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Murchie Ltd. earned $20,800,000 in 20X6 and paid dividends of $7,700,000. The company has two...

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Accounting

Murchie Ltd. earned $20,800,000 in 20X6 and paid dividends of $7,700,000. The company has two classes of voting shares. Class A shares have six votes per share, while Class B shares have one vote per share. Both participate in the distribution of net assets in the event of dissolution. There were 1,260,000 Class A shares outstanding all during 20X6, and 3,400,000 Class B shares.
Class A shares are entitled to dividends as declared, in the amount of $2.0 per share, before the Class B shares receive any dividends. After the Class A dividend, Class B shares will receive dividends as declared up to $2.5 per share. If any dividends are declared above this amount, both classes are to be allocated an identical per-share dividend.
Required:
1. Determine basic EPS for each share class for 20X6.(Do not round intermediate calculations. Round your answers to 2 decimal places.)
2. Determine basic EPS for each share class for 20X6. Assuming that there is no base dividend and dividends are split on a per-share basis between the two classes such that Class A shares receive 10 times the Class B entitlement per share. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

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