On January 1, 2008, Dingler Corporation had 125,000 shares of its $2 par value common stock outstanding. On March 1, Dingler sold an additional 250,000 shares on the open market at $20 per share. Dingler issued a 20% stock dividend on May 1. On August 1, Dingler purchased 140,000 shares and immediately retired the stock. On November 1, 200,000 shares were sold for $25 per share. What is the weighted-average number of shares outstanding for 2008?
A) 510,000
B) 375,000
C) 358,333
D) 258,333

Question

Quizplus · Accepted Answer

[(125,000 × 2 × 1.20) + (375,000 × 2 × 1.20) + (450,000 × 3) + (310,000 × 3)+ (510,000 × 2)] ÷ 12 = 375,000.

On January 1, 2008, Dingler Corporation Had 125,000 Shares of Its