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1.

At December 31, 2019, and 2020, Jet Corp. had 100,000 shares of common stock and 10,000 shares of 5%, $100 par value noncumulative preferred stock outstanding. No dividends were declared on either the preferred or the common stock in 2020 or 2019. Net income for 2020 was $1,000,000. Compute basic earnings per common share for 2020.

	Net Income Available to Common Stockholders	Weighted Avg. Common Shares Outstanding	Per Share
Basic EPS

2.

On January 1, 2020, Case Inc., had 300,000 shares of common stock issued and outstanding. Case issued a 10% stock dividend on July 1, 2020. On October 1, 2020, Case purchased 24,000 shares of its common stock for the treasury. What is the number of shares that should be used in computing basic earnings per share for the year ended December 31, 2020?

3.

C-Bay Inc.'s accounting year ends on December 31. During the following three years, its common shares outstanding changed as follows.

	2022	2021	2020
Shares outstanding, January 1	150,000	120,000	100,000
Sales of shares, April 1, 2020			20,000
25% stock dividend, July 1, 2021		30,000
2-for-1 stock split, July 1, 2022	150,000
Shares sold, October 1, 2022	50,000
Shares outstanding, December 31	350,000	150,000	120,000

Required

a. For purposes of calculating EPS at the end of each year, determine the number of shares outstanding. Hint: consider each reporting year separately.

	2022	2021	2020
Number of shares

b. For purposes of calculating EPS at the end of 2022, when comparative statements are being prepared on a three-year basis, determine the number of shares outstanding for each year.

	2022	2021	2020
Number of shares

c. Compute EPS for each year based on computations in part b. Assume net income is $375,000, $330,000, and $299,000, for years 2022, 2021, and 2020, respectively.

Note: Round earnings per share amounts to two decimal places.

Basic EPS	Net Income Available to Common Stockholders	Weighted Avg. Common Shares Outstanding	Per Share
2020
2021
2022

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