On January 1, 2020, Trigson Ltd. had 580,000 common shares outstanding. During 2020, it had the…

On January 1, 2020, Trigson Ltd. had 580,000 common shares outstanding. During 2020, it had the following transactions that affected the common share account: The company's year end is December 31. Instructions a. Determine the weighted average number of shares outstanding as at December 31, 2020. Round to the nearest share. b. Assume that Trigson earned net income of $2.5 million during 2020. In addition, it had 100,000 of 8%, $100 par, non-convertible, non-cumulative preferred shares outstanding for the entire year. Because of liquidity limitations, however, the company did not declare and pay a preferred dividend in 2020. Calculate earnings per share for 2020, using the weighted average number of shares determined in part (a). Round to the nearest cent. c. Assume the same facts as in part (b), except that the preferred shares were cumulative. Calculate earnings per share for 2020. Round to the nearest cent. d. Assume the same facts as in part (b), except that net income included a loss from discontinued operations of $200,000, net of applicable income tax. Calculate earnings per share for 2020. Round to the nearest cent. e. What is the reasoning behind using a weighted average calculation for the number of shares outstanding in the EPS ratio?

Don't use plagiarized sources. Get Your Custom Essay on
On January 1, 2020, Trigson Ltd. had 580,000 common shares outstanding. During 2020, it had the…
For as low as $7/Page
Order Essay