On January 31, 2007, Pack, Inc. split its common stock 2 for 1, and Young, Inc. issued a 5% stock dividend. Both companies issued their December 31, 2006 financial statements on March 1, 2007. Should Pack’s 2006, basic earnings per share (BEPS) take into consideration the stock split, and should Young’s 2006 BEPS take into consideration the stock dividend?

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Pack’s 2006 BEPS

Young’s 2006 BEPS

a.

Yes

No

b.

No

No

c.

Yes

Yes

d.

No

Yes