On December 31, 2012, Albacore Company had 300,000 shares of common stock issued and outstanding. Albacore issued a 10% stock dividend on June 30, 2013. On September 30, 2013, 12,000 shares of common stock were reacquired as treasury stock. What is the appropriate number of shares to be used in the basic earnings per share computation for 2013?
A)303,000.
B)342,000.
C)312,000.
D)327,000.

Question

Quizplus · Accepted Answer

The stock dividend increases the shares to 330,000 (300,000 * 1.10). The treasury stock reduces the shares to 318,000 (330,000 - 12,000). The weighted average calculation for the year results in 327,000 shares.

On December 31, 2012, Albacore Company Had 300,000 Shares of Common