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dolphi86 [110]
3 years ago
11

The following information pertains to Obama Company's outstanding stock for the year just ended:

Business
1 answer:
dem82 [27]3 years ago
7 0

Answer:

45,000 shares

Explanation:

The computation of the number of shares computed for the basic earning per share is shown below:

= shares outstanding as on Jan 1 + 2 for 1 stock split as on Jan 4 + shares issued as on Jan 7

= 20,000 shares + 20,000 shares + {10,000 shares ×  6 months ÷ 12 months }

= 20,000 shares + 20,000 shares + 5,000 shares

= 45,000 shares

The 6 months are calculated from Jan 1 to July 1

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