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At December 31, 2020, the Riley Company had 500,000 shares of common stock issued and outstanding, 400,000 of which had been issued and outstanding throughout the year and 100,000 of which were issued on October 1, 2020. The net income for the year ended December 31, 2020, was $1,360,000. The 2020 earnings per common share, rounded to the nearest penny would be

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The Earnings per Share for the Riley Company for the year ended 31st December 2020 will be $13.6 per share.

What is Earning Per Share?

The net income made by a company or a business organization over the outstanding shares over a financial period, is known as the earnings per share.

Using the given information and the formula, EPS can be computed as,

[tex]\rm Earnings\ per\ Share= \dfrac{Net\ Income}{Outstanding\ Shares}\\\\ Earnings\ per\ Share= \dfrac{1360000}{100000}\\\\ Earnings\ per\ Share= \$13.6[/tex]

Hence, the significance of Earnings per Share is as aforementioned.

Learn more about earnings per share here:

https://brainly.com/question/16562972

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