The Heath Corporation Reported Net Income for 2015 of $177,500

question 71

Multiple Choice

The Heath Corporation reported net income for 2015 of $177,500. Heath began the year with 100,000 shares of $5 par value common shares outstanding and 2,500 shares of $100 par value 8% preferred shares outstanding. On October 1, Heath sold 10,000 shares of common stock for $6 per share. Heath paid dividends to the common shareholders in December.
-The basic earnings per share for 2015 is

• A)$1.43 per share.
• B)$1.50 per share.
• C)$1.54 per share.
• D)$1.73 per share.

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Definitions:

IRS

Internal Revenue Service, the federal agency responsible for administering and enforcing tax laws in the United States.

Form 1040 Schedule C

A tax form used in the United States for reporting income or loss from a business operated as a sole proprietorship.

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