Chapter 19, Problem 19.12E

EPS; shares issued; stock dividend

• LO19–5, LO19–6

For the year ended December 31, 2018, Norstar Industries reported net income of $655,000. At January 1, 2018, the company had 900,000 common shares outstanding. The following changes in the number of shares occurred during 2018:

Apr. 30	Sold 60,000 shares in a public offering
May 24	Declared and distributed a 5% stock dividend
June 1	Issued 72,000 shares as part of the consideration for the purchase of assets from a subsidiary

Required:

Compute Norstar’s earnings per share for the year ended December 31, 2018.