Question
Larkspur Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,640,000 shares of $10 par common stock. At no time
Larkspur Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,640,000 shares of $10 par common stock. At no time has Larkspur issued any potentially dilutive securities. Listed below is a summary of Larkspurs common stock activities.
1.Number of common shares issued and outstanding at December 31, 2018
2,140,000
2.Shares issued as a result of a 10% stock dividend on September 30, 2019
214,000
3.Shares issued for cash on March 31, 2020
2,160,000
Number of common shares issued and outstanding at December 31, 2020
4,514,000
4.A 2-for-1 stock split of Larkspurs common stock took place on March 31, 2021
A. Compute the weighted-average number of common shares used in computing earnings per common share for 2019 on the 2020 comparative income statement.
B. Compute the weighted-average number of common shares used in computing earnings per common share for 2020 on the 2020 comparative income statement.
C. Compute the weighted-average number of common shares to be used in computing earnings per common share for 2020 on the 2021 comparative income statement.
D. Compute the weighted-average number of common shares to be used in computing earnings per common share for 2021 on the 2021 comparative income statement.
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