weighted average number of shares

Maneesh 30 April 2020 at 16:06 PM

Vanson, Inc. uses a calendar year for financial reporting. The company is authorized to issue 5,000,000 shares of $10
par common stock. At no time has Sands issued any potentially dilutive securities. Listed below is a summary of
Vanson's common stock activities
Number of common shares issued and outstanding at Dec. 31, 2007: 1,000,000
Shares issued as a result of a 10% stock dividend on Sept. 30, 2008: 100,000
Shares issued for cash on March 31, 2009: 1,000,000
Number of common shares issued and outstanding at Dec. 31, 2009: 2,100,000

A two-for-one stock split of Sands' common stock took place on March 31, 2010.

The weighted-average number of common shares used in computing earnings per common share for 2010 on the
2010 comparative income statement was

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FACULTY 11 May 2020 at 12:53 PM

Option A
At the beginning of 2010 there were 2,100,000 shares outstanding.
In 2010, there was a 2-for-1 stock split
2010 weighted-average shares outstanding on the 2010 comparative income statement is
(2100000 x 2)	4200000

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