Ask Question
25 July, 12:22

On January 1, 2016, Albacore Company had 300,000 shares of its common stock issued and outstanding. Albacore issued a 10% stock dividend on July 1, 2016. On October 1, 2016, Albacore retired 12,000 of its common shares. When calculating basic earnings per share for 2016, what is the appropriate number of shares for Albacore to use in the denominator of the EPS fraction?

A. 341,350. B. 322,210. C. 344,100. D. 346,850

+3
Answers (1)
  1. 25 July, 14:10
    0
    None of the option is correct as the appropriate no of shares are 327000.

    Explanation:

    As,

    The Albacore Company is having 300000 Shares.

    On July 1, 2016 10% more dividend is issued.

    And Retired 12000 Shares

    Thus, as per EPS Fraction the appropriate no of shares are

    = 300000 + (300000 * 10%) - 12000 * 1/4

    = 327000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On January 1, 2016, Albacore Company had 300,000 shares of its common stock issued and outstanding. Albacore issued a 10% stock dividend on ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers