For purposes of computing the weighted-average number of shares outstanding during the year, a mid-year event that must be treated as occurring at the beginning of the year is the:

Question

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Stock splits are treated as if they occurred at the beginning of the year for the purpose of computing the weighted-average number of shares outstanding, because they affect the comparability of shares outstanding throughout the year. This adjustment ensures that the calculation reflects the change in the number of shares across the entire reporting period, not just from the date of the split.

For Purposes of Computing the Weighted-Average Number of Shares Outstanding