Murphy Co. had 60,000 common shares outstanding on January 1, 2016. The company sold an additional 4,500 shares on March 1, issued a 3-for-1 stock split on September 1, and reacquired 3,600 shares on December 1. The company also declared, but has not paid, a dividend on its 10,000 shares of 5%, $10 par, noncumulative preferred stock. The net loss for the year was $33,190.
Required:
Compute Murphy Co.'s basic earnings per share for 2016.

Question

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The Answer of Murphy Co. had 60,000 common shares outstanding on January 1, 2016. The company sold an additional 4,500 shares on March 1, issued a 3-for-1 stock split on September 1, and reacquired 3,600 shares on December 1. The company also declared, but has not paid, a dividend on its 10,000 shares of 5%, $10 par, noncumulative preferred stock. The net loss for the year was $33,190.
Required:
Compute Murphy Co.'s basic earnings per share for 2016.

Murphy Co Had 60,000 Common Shares Outstanding on January 1, 2016