At January 1, 2020, Marvel Corp. had 200,000 common shares outstanding (no preferred shares issued). On July 1, 2020, the corporation issued 225,000 shares, and reported net income of $ 315,000 for calendar 2020. Basic earnings per share for 2020 would be

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To calculate the basic earnings per share (EPS), divide the net income by the weighted average number of common shares outstanding during the period. From January 1 to June 30, there were 200,000 shares outstanding. On July 1, an additional 225,000 shares were issued, making a total of 425,000 shares for the remainder of the year. The weighted average shares are calculated as follows: (200,000 shares * 6/12) + (425,000 shares * 6/12) = 100,000 + 212,500 = 312,500. The basic EPS is then $315,000 / 312,500 = $1.01.