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Aria Ltd. provides the following information for calendar 2020
1. Net income $ 420,000
2. Capital Structure
a) $ 8 preferred shares, no par value, cumulative, $600,000 shares outstanding. No dividends were declared during 2020.
b) Common shares, 76,000 shares outstanding on January 1.
On April 1, 40,000 shares were issued for cash.
On October 1, 16,000 shares were purchased and retired. $ 1,000,000
Instructions
Problem 1: Calculate basic earnings per share for 2020.
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