WEIGHTY Inc.started the current year with 2,000 common shares issued,but only 1,500 were outstanding at that time.The following events took place during the current year: March 30 issued 200 previously unissued shares
June 1 sold 400 treasury shares
December 1 purchased 100 treasury shares
December 31 issued 500 previously unissued shares
What is WEIGHTY's denominator of earnings per share for the current year? (Do not round intermediate calculations.Round your final answer to nearest whole number.)

Question

Quizplus · Accepted Answer

Weighty Inc. started with 2,000 common shares issued, but only 1,500 were outstanding, which means the company had 500 treasury shares. 
During the year, the company issued 200 new shares, bringing the total number of issued shares to 2,200 (1,500 outstanding + 500 treasury + 200 newly issued). 
The company sold 400 treasury shares, leaving them with 100 treasury shares (500 beginning treasury - 400 sold + 100 purchased). 
At the end of the year, the company issued 500 new shares, bringing the total number of issued shares to 2,700 (2,200 + 500 newly issued). 
Therefore, the denominator of earnings per share for the current year is 1,500 + 100 + 2,700 = 4,300, and the best choice is C, 1,875 shares.