Question
1) Laurin Limited had 42,000 common shares outstanding on January 1, 2020. On March 1, 2020, Laurin issued 20,000 shares in exchange for equipment. On
1) Laurin Limited had 42,000 common shares outstanding on January 1, 2020. On March 1, 2020, Laurin issued 20,000 shares in exchange for equipment. On July 1, Laurin repurchased and cancelled 10,000 shares. On October 1, 2020, Laurin declared and issued a 10% stock dividend. Calculate the weighted average number of shares outstanding for Laurin for the year ended December 31, 2020. Round to the nearest share.
2) Assume the same information as in (part 1) except- that on October 1, 2020, Laurin declared a 3-for-1 stock split instead of a 10% stock dividend. Calculate the weighted average number of shares outstanding for Laurin for the year ended December 31, 2020. Round to the nearest share.
3) Assume the same information as in (part 1) except - that on October 1, 2020, Laurin declared a 1-for-2 reverse stock split instead of a 10% stock dividend. Calculate the weighted average number of shares outstanding for Laurin for the year ended December 31, 2020. Round to the nearest share.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started