Knotworth Gedding Consulting Company had 430,000 shares of common stock outstanding on December 31, 2023. On that d there were also 5,300 shares of $100 par, 6% noncumulative preferred stock outstanding. On March 1, 2024, the company's c stock split 4-for-1. On December 15, 2024, a preferred dividend was declared and paid in the amount of $28,000. Net income was $3,300,000. Required: Compute basic earnings per share for the year ended December 31, 2024.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Knotworth Gedding Consulting Company had 430,000 shares of common stock outstanding on December 31, 2023. On that date,
there were also 5,300 shares of $100 par, 6% noncumulative preferred stock outstanding. On March 1, 2024, the company's common
stock split 4-for-1. On December 15, 2024, a preferred dividend was declared and paid in the amount of $28,000. Net income for 2024
was $3,300,000.
Required:
Compute basic earnings per share for the year ended December 31, 2024.
Note: Round your answer to 2 decimal places.
Transcribed Image Text:Knotworth Gedding Consulting Company had 430,000 shares of common stock outstanding on December 31, 2023. On that date, there were also 5,300 shares of $100 par, 6% noncumulative preferred stock outstanding. On March 1, 2024, the company's common stock split 4-for-1. On December 15, 2024, a preferred dividend was declared and paid in the amount of $28,000. Net income for 2024 was $3,300,000. Required: Compute basic earnings per share for the year ended December 31, 2024. Note: Round your answer to 2 decimal places.
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