On January 1, a corporation had 25,000 shares of common stock outstanding. An additional 10,000 shares were issued on July 1, and on November 1, the company declared a 2-for-1 stock split. The denominator in the earnings per share calculation would be

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The stock split affects all shares retroactively. Before the split, the weighted average shares are 25,000 for 6 months and 35,000 for 4 months. After the split, these become 50,000 and 70,000 respectively. The weighted average is (50,000 * 6/12) + (70,000 * 4/12) = 60,000.

On January 1, a Corporation Had 25,000 Shares of Common