Earnings per common share based problem


At December 21, 2004, Marshall Company had 500,000 shares of common stock issued and outstanding, 400,000 of which had been issued and outstanding throughout the year and 100,000 of which were issued on October 1, 2004. Net income for the year ended December 31, 2004, was $765,000. What should be Marshall's 2004 earnings per common share, round to the nearest penny?

a. $1.53

b. $1.90

c. $1.80

d. $1.70

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Accounting Basics: Earnings per common share based problem
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