**Question - **Lyon declared dividends of $ 6, 000 on preferred stock and $ 17,280 on common stock. At the beginning of 2013, 10,000 shares of common stock were outstanding. On May 4, 2013, the company issued 2, 000 additional common shares, and on October 19, 2013, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible.

Required -

1. Compute the basic earnings per share. if required, round you answer to the nearest cent.

2. Show the 2013 income statement disclosure of basic EPS. If required round your answer to the nearest cent.

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Compute the basic earnings per share : Lyon declared dividends of $ 6, 000 on preferred stock and $ 17,280 on common stock. Compute the basic earnings per share |

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