The Li Group had 230,000 shares of common stock outstanding at January 1, 2024. The following activities affected common shares during the year. There are no potential common shares outstanding. 2024 February 28 Purchased 27,000 shares of treasury stock. October 31 Sold the treasury shares purchased on February 28. November 30 Issued 108,000 new shares. December 31 Net income for 2024 is $1,547,000. 2025 January 15 Declared and issued a 2-for-1 stock split. December 31 Net income for 2025 is $1,547,000. Required: Determine the 2024 EPS. Determine the 2025 EPS. At what amount will the 2024 EPS be presented in the 2 025 comparative financial statements?
The Li Group had 230,000 shares of common stock outstanding at January 1, 2024. The following activities affected common shares during the year. There are no potential common shares outstanding. 2024 February 28 Purchased 27,000 shares of treasury stock. October 31 Sold the treasury shares purchased on February 28. November 30 Issued 108,000 new shares. December 31 Net income for 2024 is $1,547,000. 2025 January 15 Declared and issued a 2-for-1 stock split. December 31 Net income for 2025 is $1,547,000. Required: Determine the 2024 EPS. Determine the 2025 EPS. At what amount will the 2024 EPS be presented in the 2 025 comparative financial statements?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The Li Group had 230,000 shares of common stock
outstanding at January 1, 2024. The following activities
affected common shares during the year. There are no
potential common shares outstanding.
2024
February 28 Purchased 27,000 shares of treasury stock.
October 31 Sold the treasury shares purchased on
February 28.
November 30 Issued 108,000 new shares.
December 31 Net income for 2024 is $1,547,000.
2025
January 15 Declared and issued a 2-for-1 stock split.
December 31 Net income for 2025 is $1,547,000.
Required:
Determine the 2024 EPS.
Determine the 2025 EPS.
At what amount will the 2024 EPS be presented in the 2
025 comparative financial statements?
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