Morrison Corporation had the following common stock record during the current calendar year: What is the number of shares to be used in computing basic EPS?
A)2,000,000.
B)2,200,000.
C)2,307,500.
D)2,310,000.

Question

Quizplus · Accepted Answer

The number of shares to be used in computing basic EPS is the weighted average number of common shares outstanding during the period. The calculation is as follows: 
(2,000,000 shares × 6 months) + (2,400,000 shares × 6 months) = 12,000,000 + 14,400,000 = 26,400,000
26,400,000 ÷ 12 months = 2,200,000
Therefore, the answer is choice C, 2,307,500 shares, which is the closest option to the calculated result.

Morrison Corporation Had the Following Common Stock Record During the Current