1 2 Question 1 Shendan Corporation, a publicly traded company, is preparing the comparative financial statements to be included in the annual report to shareholders. Sheridan's fiscal year ends May 31. The following information is available. Income from operations before income tax for Sheridan was $1,400,000 and $1,800,000, respectively, for the fiscal years ended May 31, 2021, and 2020. Sheridan experienced a loss from discontinued operations of $400,000 from a business segment disposed of on March 3, 2021. A 20% combined income tax rate applies to all of Sheridan Corporation's profits, gains, and losses. 4. Sheridan's capital structure consists of preferred shares and common shares. The company has not issued any convertible securities or warrants and there are no outstanding stock options. Sheridan issued 130,000 of $10 par value, 5% cumulative preferred shares in 2013. All of these shares are outstanding, and no preferred dividends are in arrears. There were 1.60 million common shares outstanding on June 1, 2019. On September 1, 2019, Sheridan sold an additional 400,000 common shares at $18 per share. Sheridan distributed a 20% stock dividend on the common shares outstanding on December 1, 2020. These were the only common share transactions during the past two fiscal years. 3 5. 6 7 x Your answer incorrect. Try again. Determine the weighted average number common shares that would be used in calculating earnings per share on the current comparative income statement for: 1. The year ended May 31, 2021 1900000 2. The year ended May 31, 2020