1.On December 31, 2015, Emmanuel Company had 65,000 shares of common stock issued and outstanding. Emmanuel issued a 11% stock dividend on June 30, 2016. On October 1, 2016, 18,000 shares of common stock were reacquired as treasury stock. What is the appropriate number of shares to be used in the basic earnings per share computation for 2016?

2. Ellen Kelly Inc. had 49,000 shares of $.50 par common stock 14,000 shares of 5%, $20 par cumulative preferred stock and 24,000 shares of 5%, $10 par preferred stock convertible into 14,400 common shares. Net income after taxes was $53,541. No dividends were declared during the year. The numerator in the Basic EPS would be