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Chapter 16: Q10BE. (page 875)

Douglas Corporation had 120,000 shares of stock outstanding on January 1, 2017. On May 1, 2017, Douglas issued 60,000 shares. On July 1, Douglas purchased 10,000 treasury shares, which were reissued on October 1. Compute Douglas鈥檚 weighted-average number of shares outstanding for 2017.

Short Answer

Expert verified

Douglas鈥檚 weighted-average number of shares outstanding for 2017 is $157,500.

Step by step solution

01

The information given is as follows

Shares of stock outstanding on January 1, 2017, is $120,000.

Issue on May 1, 2017, is 60,000.

Treasury shares are 10,000.

02

Computation of weighted average number of shares outstanding for 2017

Date outstanding

Share outstanding

Fraction of year

Weighted share

1/1鈥�5/1

120,000

4/12

40,000

5/1鈥�7/1

180,000

2/12

30,000

7/1鈥�10/1

170,000

3/12

42,500

10/1鈥�12/31

180,000

3/12

45,000

157,500

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Most popular questions from this chapter

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