Question
Sunland Corporation Ltd. has the following capital structure at the following fiscal years ended December 31: 20202019 Number of common shares630,000480,000Number of non-convertible, non-cumulative preferred
Sunland Corporation Ltd. has the following capital structure at the following fiscal years ended December 31:
20202019Number of common shares630,000480,000Number of non-convertible, non-cumulative preferred A shares30,00030,000Amount of 6% convertible bonds$1,000,000$1,000,000
The following additional information is available.
1.On July 31, 2020, Sunland Corporation exchanged common shares for a large piece of equipment. This was the only transaction that resulted in issuance of common shares in 2020.2.Income before discontinued operations for 2020 was $1,400,000, and a loss from discontinued operations of $220,000 was recorded, net of applicable tax recovery.3.During 2020, dividends in the amount of $4 per share were paid on the preferred A shares.4.Each $1,000 bond can be converted into 25 common shares.5.There were unexercised stock options, outstanding since 2017, that allow holders to purchase 20,000 common shares at $4.00 per share.6.Written warrants to purchase 10,000 common shares at $7.00 per share were outstanding at the end of 2019, and no warrants were exercised in 2020.7.The average market value of the common shares in 2020 was $5.00.8.Sunland's tax rate is 20%.9.Sunland declared and paid a $5,000 dividend to common shareholders on June 1, 2020.
Q: what is the weighted average number of common shares that would be used in calculating earnings per share for the year ended December 31, 2020.
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