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Pharoah 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
Pharoah 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 Pharoah issued any potentially dilutive securities. Listed below is a summary of Pharoahs 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 Pharoahs common stock took place on March 31, 2021 |
Compute the weighted-average number of common shares used in computing earnings per common share for 2019 on the 2020 comparative income statement.
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