On January 1, 2026, Sunland Corp. had 478,000 shares of common stock outstanding. During 2026, it had the following transactions
that affected the common stock account.
February 1 Issued 120,000 shares
March 1 Issued a 10% stock dividend
May 1 Acquired 102,000 shares of treasury stock
June 1 Issued a 3-for-1 stock split
October 1 Reissued 59,000 shares of treasury stock
(a)
Your Answer Correct Answer (Used)
Determine the weighted-average number of shares outstanding as of December 31, 2026.
The weighted-average number of shares outstanding 1,751,150
Question Part Score 0/1.2
(b)
Your answer is incorrect.
Assume that Sunland Corp. earned net income of $3,582,000 during 2026. In addition, it had 102,000 shares of 9%, $100 par
nonconvertible, noncumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the
company did not declare and pay a preferred dividend in 2026. Compute earnings per share for 2026, using the weighted-average
number of shares determined in part (a). (Round answer to 2 decimal places, e.g. 2.55.)
Earnings per share $