Question
Sunland Inc. is publicly traded and uses a calendar year for financial reporting. The company is authorized to issue 11 million common shares. At no
Sunland Inc. is publicly traded and uses a calendar year for financial reporting. The company is authorized to issue 11 million common shares. At no time has Sunland issued any potentially dilutive securities. The following list is a summary of Sunlands common share activities: Number of common shares issued and outstanding at December 31, 2015 6,900,000 Shares issued as a result of a 10% stock dividend on September 30, 2016 690,000 Shares issued for cash on March 31, 2017 2,740,000 Number of common shares issued and outstanding at December 31, 2017 10,330,000 Sunland issued its 2017 financial statements on February 28, 2018. A 2for1 stock split of Sunlands common shares occurred on March 31, 2018.
a/Calculate the weighted average number of common shares to use in calculating earnings per common share for 2016 on the 2016 comparative income statement.
b/Calculate the weighted average number of common shares to use in calculating earnings per common share for 2016 on the 2017 comparative income statement.
c/Calculate the weighted average number of common shares to use in calculating earnings per common share for 2017 on the 2017 comparative income statement.
d/Calculate the weighted average number of common shares to use in calculating earnings per common share for 2017 on the 2018 comparative income statement.
e/Calculate the weighted average number of common shares to use in calculating earnings per common share for 2018 on the 2018 comparative income statement.
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