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Compute the basic earnings per share

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Question - Assume that the following data relative to xxx Company for 2019 is available:

Net Income Transactions in Common Shares

Jan. 1, 2019, beginning number, 900,000 shares outstanding

May. 1, 2019, Purchase of 150,000 treasury shares

August 1, 2019 Company declared and distributed a 20% stock dividend

Oct. 1, 2019, Issuance of 200,000 shares $2,500,000 Stock Options

Kane Company has 20,000 stock warrants for a strike price of $20 a share outstanding.

Market value of the stock is $40 a share at December 31, 2010.

Compute the basic earnings per share for 2010.

Reference no: EM132493818

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