Reference no: EM132684495
At December 31, 2020, Blue Spruce Corporation had the following shares outstanding:
7% cumulative preferred shares, 114,100 shares outstanding $11,410,000
Common shares, 3,910,000 shares outstanding 19,550,000
During 2020, the corporation's only share transaction was the issuance of 470,000 common shares on April 1. During 2020, the following also occurred:
Income from continuing operations before tax $24,340,000
Discontinued operations (loss before tax) 3,302,000
Preferred dividends declared 798,700
Common dividends declared 2,170,000
Effective tax rate 30%
Problem 1: Calculate earnings per share information as it should appear in the financial statements of Blue Spruce Corporation for the year ended December 31, 2020