On January 1, 2018, Warren Corporation had 950,000 shares of common stock outstanding. On March 1, the corporation issued 150,00
0 new shares to raise additional capital. On July 1, the corporation declared and issued a 2-for-1 stock split. On October 1, the corporation purchased on the market 450,000 of its own outstanding shares and retired them. Required:
Compute the weighted average number of shares to be used in computing earnings per share for 2018.
Depreciation is the systematic allocation of cost to an asset. it is given as
Depreciation = (cost - salvage value)/useful life
When an asset is sold at an amount lower than its carrying or net book value, a loss on sale/disposal is recognized otherwise, a gain on disposal. The netbook value is the cost less accumulated depreciation.
