Reference no: EM132543601

At January 1, 2020, Sarasota Company's outstanding shares included the following.

1. 283,000 shares of $50 par value, 7% cumulative preferred stock
2. 942,000 shares of $1 par value common stock

Point 1: Net income for 2020 was $2,521,000. No cash dividends were declared or paid during 2020. On February 15, 2021, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears prior to 2020.

Point 2: On April 1, 2020, 449,000 shares of common stock were sold for $10 per share, and on October 1, 2020, 109,000 shares of common stock were purchased for $19 per share and held as treasury stock.

Question 1: Compute earnings per share for 2020. Assume that financial statements for 2020 were issued in March 2021. (Round answer to 2 decimal places, e.g. $2.55.)