Answer:
Gear Corporation
The number of shares to be used in computing basic EPS is:
6,654,400 shares
Explanation:
a) Data and Calculations:
January 1 Outstanding shares = 1,104,000
March 31 Issued shares 5,040,000
Total outstanding before June 6,144,000
June 30 10% Stock Dividend 614,400
Total before reacquisition in Sept. 6,758,400
Sept. 30 Treasury Stock 104,000
Total outstanding for EPS computing 6,654,400
b) The outstanding number of shares on December 31 equals 6,654,400 shares. This will be used to calculate Gear's EPS.
