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Blossom Corporation Ltd. has the following capital structure at the following fiscal years ended December 31:...

Blossom Corporation Ltd. has the following capital structure at the following fiscal years ended December 31:

2020 2019
Number of common shares 750,000 600,000
Number of non-convertible, non-cumulative preferred A shares 20,000 20,000
Amount of 5% convertible bonds $1,000,000 $1,000,000


The following additional information is available.

1. On July 31, 2020, Blossom Corporation exchanged common shares for a large piece of equipment. This was the only transaction that resulted in issuance of common shares in 2020.
2. Income before discontinued operations for 2020 was $1,700,000, and a loss from discontinued operations of $360,000 was recorded, net of applicable tax recovery.
3. During 2020, dividends in the amount of $4 per share were paid on the preferred A shares.
4. Each $1,000 bond can be converted into 25 common shares.
5. There were unexercised stock options, outstanding since 2017, that allow holders to purchase 20,000 common shares at $4.00 per share.
6. Written warrants to purchase 10,000 common shares at $12.00 per share were outstanding at the end of 2019, and no warrants were exercised in 2020.
7. The average market value of the common shares in 2020 was $10.00.
8. Blossom’s tax rate is 20%.
9. Blossom declared and paid a $5,000 dividend to common shareholders on June 1, 2020.

Determine the weighted average number of common shares that would be used in calculating earnings per share for the year ended December 31, 2020.

Weighted average number of common shares Enter your answer in accordance to the question statement shares

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Starting with the heading “Income from Continuing Operations,” prepare the bottom portion of the income statement for the year ended December 31, 2020. Assume that Blossom Corporation discloses all applicable earnings per share data on the face of the income statement. (Round Earnings Per Share amounts to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Blossom Corporation
Partial Income Statement
                                                                      December 31, 2020For the Year Ended December 31, 2020For the Month Ended December 31, 2020
                                                                      Income from Discontinued OperationsLoss from Discontinued OperationsLoss from Continuing OperationsNet Income / (Loss)Income from Continuing Operations $
                                                                      Net Income / (Loss)Loss from Discontinued OperationsIncome from Continuing OperationsLoss from Continuing OperationsIncome from Discontinued Operations
                                                                      Loss from Discontinued OperationsLoss from Continuing OperationsNet Income / (Loss)Income from Discontinued OperationsIncome from Continuing Operations $
Basic earnings per share:
                                                                      Loss from Discontinued OperationsNet Income / (Loss)Loss from Continuing OperationsIncome from Continuing OperationsIncome from Discontinued Operations $
                                                                      Loss from Discontinued OperationsLoss from Continuing OperationsIncome from Continuing OperationsNet Income / (Loss)Income from Discontinued Operations
                                                                      Income from Continuing OperationsLoss from Discontinued OperationsIncome from Discontinued OperationsLoss from Continuing OperationsNet Income / (Loss) $
Diluted earnings per share:
                                                                      Income from Discontinued OperationsIncome from Continuing OperationsLoss from Continuing OperationsNet Income / (Loss)Loss from Discontinued Operations $
                                                                      Income from Continuing OperationsIncome from Discontinued OperationsNet Income / (Loss)Loss from Continuing OperationsLoss from Discontinued Operations
                                                                      Loss from Discontinued OperationsLoss from Continuing OperationsIncome from Continuing OperationsNet Income / (Loss)Income from Discontinued Operations $

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