Reference no: EM132845584
Question - Schwabisch Hall Corp provides the following data for calendar 2020:
Net income $2400,000
Transactions in Common Shares
Jan 1: Beginning (Cumulative : 1,000,000)
March 1: Purchase of treasury shares (Change 60,000) (Cumulative 1,880,000)
Jun 1: Shares split 2 for 1 (Change 120,000) (Cumulative 2,000,000)
8% Cumulative Convertible preferred share (no par) convertible into 200,000 common shares adjusted for split on June 1 = $ 1,000,000
Stock options
Exercisable at the option price of $ 25 per share
Ave. Market price in 2020 was $30 (market price and option price adjusted for split) = 60,000 shares
Required -
A) Calculate basic earnings per share for 2020?
B) Calculate diluted earnings per share for 2020?