In 2012,ABC Company reported earnings per share of $2.00 for 10,000 shares.In 2013,there was a 2-for-1 stock split,for which 2013 earnings per share were reported at $2.10.The appropriate earnings per share presentation for a 2-year comparative analysis would be:
$\begin{array} { l l }
\quad\quad\underline{ 2013 } &\underline{ 2012 }\
I.\quad\$2.10&\$2.00\
II\quad\$ 1.05 & \$ 2.00 \
III\quad\$ 1.05 & \$ 2.00 \
IV\quad\$ 2.10 & \$ 1.00
\end{array}$

Question

In 2012,ABC Company reported earnings per share of $2.00 for 10,000 shares.In 2013,there was a 2-for-1 stock split,for which 2013 earnings per share were reported at $2.10.The appropriate earnings per share presentation for a 2-year comparative analysis would be:
$\begin{array} { l l } 
\quad\quad\underline{ 2013 }  &\underline{ 2012 }\
I.\quad\$2.10&\$2.00\
II\quad\$ 1.05 & \$ 2.00 \
III\quad\$ 1.05 & \$ 2.00 \
IV\quad\$ 2.10 & \$ 1.00
\end{array}$

Quizplus · Accepted Answer

After a stock split, prior year EPS should be adjusted to reflect the split. Thus, 2012 EPS should be $1.00, not $2.00, to be comparable with 2013's $2.10.

In 2012,ABC Company Reported Earnings Per Share of $2 A)I B)II C)III D)IV E)none of the Answers Are Correct

In 2012,ABC Company Reported Earnings Per Share of $2 A)I
B)II
C)III
D)IV
E)none of the Answers Are Correct