MC Qu. 15-56 The following information has been... The following information has

Question

MC Qu. 15-56 The following information has been... The following information has been obtained from the Massena Corporation: 100,000 shares of common stock were outstanding on January 1, 2018. 30,000 shares of common stock were issued on March 1, 2018 A 2-for-1 stock split was declared on April 1, 2018. .The 2-for-1 stock split was distributed on May 1, 2018 10,000 shares of common stock were purchased on October 1. 2018 What is the weighted average number of shares to be used in the calculation of basic earnings per share for 2 018? Multiple Choice 247,500 216,250

Explanation / Answer

Correct answer is option A.247,500

Weighted average number of shares of common stock outstanding.

= [ (100,000 x 12/12) + 30,000 x 10/12) ] x 2 Stock splits( -) 10,000*3/12

=250,000-2500

=247500

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