Penn Company had 10,000,000 shares of common stock outstanding on January 1,2015.Penn entered into the following stock transactions during 2015:
• 2,000,000 shares of common stock were issued on April 1^st.
• 600,000 shares of common stock were purchased on May 1^st and were being held as treasury stock.
• 500,000 shares of preferred stock were issued on July 1^st.
• 400,000 shares of treasury stock were reissued on October 1^st.
• A 2-for-1 common stock split was declared on November 1^st.
• Bonds convertible into 1,200,000 shares of common stock were issued on December 1^st;the bonds are considered to be dilutive.
Determine the number of shares to be used in the calculation of basic EPS and diluted EPS.

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The Answer of Penn Company had 10,000,000 shares of common stock outstanding on January 1,2015.Penn entered into the following stock transactions during 2015: • 2,000,000 shares of common stock were issued on April 1^st. • 600,000 shares of common stock were purchased on May 1^st and were being held as treasury stock. • 500,000 shares of preferred stock were issued on July 1^st. • 400,000 shares of treasury stock were reissued on October 1^st. • A 2-for-1 common stock split was declared on November 1^st. • Bonds convertible into 1,200,000 shares of common stock were issued on December 1^st;the bonds are considered to be dilutive. Determine the number of shares to be used in the calculation of basic EPS and diluted EPS.

Penn Company Had 10,000,000 Shares of Common Stock Outstanding on January