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On January 1, 2020, Rondeau Inc., a publicly traded company, had 200,000 common shares issued and outstanding and 10,000 of $100 par value, 6% cumulative preferred shares issued and outstanding. On October 31, 2020, the company issued a 2:1 stock split. For 2020, the company reported a gain from discontinued operations of $30,000 (net of tax) and net income after tax of $375,000 (after the gain from discontinued operations). Required Problem a. Calculate the weighted average number of shares outstanding to use in calculating earnings per common share during 2020. Round to the nearest whole number. Problem b. Calculate earnings per share as it should be reported to shareholders by completing the table below. Round to the nearest cent.
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