O. Company had net income of $3,000,000 in 2016, which included a net loss from an extraordinary event of $300,000 (net of $100,000 tax)
The activity for O. common shares during 2016 included the following:
Jan. 1 there were 1,000,000 shares outstanding
Apr. 1 issued 20,000 shares
Sept. 1, purchased 70,000 treasury shares
Dec. 1, declared a 100% stock dividend on common shares
Round weighted average number of shares to the nearest whole share if needed
Additional Information
Convertible preferred stock: During the year there were 10,000 shares of cummulative convertible preferred stock paying a 3% dividend, each share with a par value of
convertible into four shares of common stock. No preferred dividends were declared or paid during the year

Convertible bonds: One thousand 6% convertible bonds were issued for the first time on July 1, 2015 at a price of 100. Each bond has a $1,000 face value and is converti
None were actually converted during the year. The income tax rate is 35%

Stock options (Group A):During the year 70,000 options existed for key executives to buy common stock at an exercise price of $50. the average stock price was $70 dur
during the year.

Stock Options (Group B): On July 1, 2015, 10,000 options were granted to all employees who had worked for the company for more than 10 years to buy common stock

Using the table Below, show how earnings per share should appear on the Face of O’s 2016 income statement
Income from con. Operations before extraordinary items
Extraordinary loss (net 100,000 tax)
Net Income

of $100 and

ertible into 50 shares of common stock.

during the year. No options were actually exercised

ock at an exercidr price of $80. The average stock price was $70 during the year. No options were actually exercised during the year