At December 31, 2008 Quiggin had 400,000 shares of common stock outstanding. The company also had 40,000 shares of $7 convertible preferred stock. Each share is convertible into 4 shares of common stock. (Dividends were declared and paid)
Transactions during 2009:
July 1, 2009 Sold 200,000 shares
July 8, 2009 Declared 100% stock dividend
September 1, 2009 Sold 120,000 shares
October 1, 2009 Purchased 60,000 shares to be held in treasury
Quiggin reported a loss of $670,700 for 2009
How do I compute earnings per share and diluted earnings per share?