Problem based on net income of company


Shamrock Company had a net income of $30,000. On January 1, the number of shares of common stock outstanding was 8,000. On April 1, the company issued an additional 2,000 shares of common stock. There were no other stock transactions. The company's earnings per share is:

1. $3.75.

2. $3.00.

3. $3.33.

4. $3.16.

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Accounting Basics: Problem based on net income of company
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