Eric, Inc.began 2011 with 25, 000 common shares outstanding and issued a 20% stock dividend on August 1.The company issued 6, 000 shares on December 1.Eric also has 8, 000 shares of 8%, $20 par, cumulative preferred stock outstanding on which no dividends have been paid during either 2010 or 2011.Net income for 2011 was $165, 060.
Required:
Compute Eric, Inc.'s basic earnings per share for 2011.

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The Answer of Eric, Inc.began 2011 with 25, 000 common shares outstanding and issued a 20% stock dividend on August 1.The company issued 6, 000 shares on December 1.Eric also has 8, 000 shares of 8%, $20 par, cumulative preferred stock outstanding on which no dividends have been paid during either 2010 or 2011.Net income for 2011 was $165, 060.
Required:
Compute Eric, Inc.'s basic earnings per share for 2011.

Eric, IncBegan 2011 with 25, 000 Common Shares Outstanding and Issued