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Rolando Inc. had 888,000 common shares outstanding on 1 January 20X8. On 1 June, the company entered into an agreement to purchase the shares of

Rolando Inc. had 888,000 common shares outstanding on 1 January 20X8. On 1 June, the company entered into an agreement to purchase the shares of Leroy Co. As part of this acquisition transaction, Rolando agreed to issue 130,000 new common shares to the previous shareholders of Leroy if the company had total sales of $8.0 million for the first year. The goal was met by 31 December 20X8 and the shares were issued on 1 February 20X9. Also during the year, the company repurchased 37,500 shares on 1 December.

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