1.

Bay Inc. began the fiscal year 2021 with 548,000 common shares outstanding. On September 1, the company issued an additional 120,000 common shares. On June 1, the company announced 3-for-1 stock split. On October 1, the company repurchased 60,000 treasury shares. Compute the number of shares Bay would use to calculate its basic earnings per share for 2021.

2.

Bay Inc. sold a patent for cash. The patent was originally acquired for $64,500, and the accumulated amortization as of the date of sale was $37,200. The loss on the sale was $1,700. What is the amount of cash received on the sale?

3.

The beginning and ending balances in Bay Inc's Deferred Tax Asset were $35,000, and $22,100 respectively. Net income is $3,400. What adjustment should be made to Net Income under the indirect method?