On January 1,Oxford Corporation had outstanding 70,000 common shares.On April 1,Oxford Corporation issued 20,000 common shares in exchange for land.On June 30,Oxford Corporation reacquired 5,000 of its common shares.On November 1,Oxford reissued 3,000 shares.No other transactions regarding common shares occurred.The denominator to be used in the earnings per share calculation is:

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The denominator to be used in the earnings per share calculation is the weighted average number of shares outstanding during the period. The weighted average number of shares outstanding is calculated by multiplying the number of shares outstanding at each date by the number of days the shares were outstanding during the period, and then dividing the sum of the products by the total number of days in the period.In this case, the number of shares outstanding at each date is as follows:January 1: 70,000 sharesApril 1: 90,000 shares (70,000 + 20,000)June 30: 85,000 shares (90,000 - 5,000)November 1: 88,000 shares (85,000 + 3,000)The number of days the shares were outstanding during the period is as follows:January 1 to April 1: 90 daysApril 1 to June 30: 90 daysJune 30 to November 1: 122 daysNovember 1 to December 31: 60 daysThe weighted average number of shares outstanding is calculated as follows:(70,000 shares x 90 days) + (90,000 shares x 90 days) + (85,000 shares x 122 days) + (88,000 shares x 60 days) / 365 days = 83,000 sharesTherefore, the denominator to be used in the earnings per share calculation is 83,000 shares.

On January 1,Oxford Corporation Had Outstanding 70,000 Common Shares