Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Colon Co. uses a calendar year for financial reporting. The company is authorized to issue 5 million shares of $10 par common stock. At no

Colon Co. uses a calendar year for financial reporting. The company is authorized to issue 5 million shares of $10 par common stock. At no time has Colon issued any potentially dilutive securities. A two-for-one stock split of Colons common stock took place on March 31, Year 4. Additional information is in the next column.

Number of common shares issued and

outstanding at 12/31/Year 1

1,000,000

Shares issued as a result of a

10% stock dividend on 9/30/Year 2

100,000

Shares issued for cash on 3/31/Year 3

1,000,000

Number of common shares issued and

outstanding at 12/31/Year 3

2,100,000

Question

The weighted-average number of common shares used in computing basic earnings per common share for Year 2 on the Year 3 comparative income statement was

A.1,000,000

B.1,050,000

C.1,100,000

D.1,025,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions