On January 1, a corporation had 60, 000 shares of common stock outstanding.On March 1, the company reacquired 12, 000 shares, and it declared a 10% stock dividend on October 1.The denominator in the earnings per share calculation would be

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The denominator in the earnings per share calculation takes into account the average number of shares outstanding during the year. Since the company reacquired 12,000 shares, the number of shares outstanding after March 1 is 60,000 - 12,000 = 48,000. However, since a 10% stock dividend was declared on October 1, the number of shares outstanding increased by 10% of 48,000, or 4,800 shares. Therefore, the average number of shares outstanding during the year is (60,000 + 48,000 + 52,800) / 3 = 55,000. Therefore, the correct answer is C.

On January 1, a Corporation Had 60, 000 Shares of Common