On January 1,2018,Carleton Corporation had 55,000 shares of $6 par value common stock outstanding.On March 31,2018,Carleton issued an additional 10,000 shares in exchange for a building.What number of shares will be used in the computation of earnings per share for the year 2018?

Question

Quizplus · Accepted Answer

The weighted average number of shares outstanding for 2018 would be ((55,000 shares x 3/12) + (65,000 shares x 9/12)) = 62,500 shares. Therefore, C is the correct answer.

On January 1,2018,Carleton Corporation Had 55,000 Shares of $6 Par