At January 1, 2017, Ariel Corp.had 300,000 common shares outstanding (no preferred shares issued).On July 1, 2017, the corporation issued 450,000 shares, and reported net income of $630,000 for calendar 2017.Basic earnings per share for 2017 would be

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To calculate basic earnings per share (EPS), use the formula: EPS = Net Income / Weighted Average Shares Outstanding. Ariel Corp's weighted average shares for 2017 is calculated as follows: 300,000 shares for the first 6 months and 750,000 shares (300,000 + 450,000) for the last 6 months. The weighted average is (300,000 * 6/12) + (750,000 * 6/12) = 525,000 shares. Therefore, EPS = $630,000 / 525,000 = $1.20.