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Marin Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,100,000 shares of $10 par common stock. At no time
Marin Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,100,000 shares of $10 par common stock. At no time has Marin issued any potentially dilutive securities. Listed below is a summary of Marins common stock activities.
1. | Number of common shares issued and outstanding at December 31, 2018 | 2,200,000 | ||
2. | Shares issued as a result of a 10% stock dividend on September 30, 2019 | 220,000 | ||
3. | Shares issued for cash on March 31, 2020 | 2,040,000 | ||
Number of common shares issued and outstanding at December 31, 2020 | 4,460,000 | |||
4. | A 2-for-1 stock split of Marins common stock took place on March 31, 2021 |
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.
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