A company split its common stock two-for-one on June 30 of its accounting year ended December 31.

Question:

A company split its common stock two-for-one on June 30 of its accounting year ended December 31. Before the split, there were 4,000 shares of common stock outstanding. How many shares of common stock should be used in computing EPS for the year? How many shares of common stock should be used in computing a comparative EPS amount for the preceding year?

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