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Pearl Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,480,000 shares of $10 par common stock. At no time

Pearl Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,480,000 shares of $10 par common stock. At no time has Pearl issued any potentially dilutive securities. Listed below is a summary of Pearls common stock activities.

1.

Number of common shares issued and outstanding at December 31, 2018

1,900,000

2.

Shares issued as a result of a 10% stock dividend on September 30, 2019

190,000

3.

Shares issued for cash on March 31, 2020

2,130,000

Number of common shares issued and outstanding at December 31, 2020

4,220,000

4.

A 2-for-1 stock split of Pearls 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.

shares

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