The following information pertains to J Company's outstanding stock for 2018: What is the number of shares J should use to calculate 2018 basic earnings per share?
A) 20,000.
B) 22,500.
C) 25,000.
D) 27,000.

Question

The following information pertains to J Company's outstanding stock for 2018:  What is the number of shares J should use to calculate 2018 basic earnings per share?
A) 20,000. 
B) 22,500. 
C) 25,000. 
D) 27,000.

Quizplus · Accepted Answer

The key point is that the stock split is retroactive to the beginning of the year.
10,000 (2.0) + 5,000 (6/12) = 22,500

The Following Information Pertains to J Company's Outstanding Stock for 2018