At December 31,2013,Joplin Company had 350 shares of common stock outstanding.On October 1,2014,an additional 150 shares of common stock were issued.In addition,Joplin had $40,000 of 8 percent convertible bonds outstanding at December 31,2014,which are convertible in 225 shares of common stock.No bonds were converted into common stock in 2014.Net income for the year ended December 31,2014,was $14,000.Assuming an income tax rate of 50%,the basic earnings per share for the year ended December 31,2014,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. For Joplin Company, the weighted average number of shares is calculated as follows: 350 shares for the entire year plus 150 shares for 3 months (October to December). This results in a weighted average of $350 \times 12/12 + 150 \times 3/12 = 350 + 37.5 = 387.5$ shares. The basic EPS is then $14,000 / 387.5 = $36.08$.

At December 31,2013,Joplin Company Had 350 Shares of Common Stock