The following cases are independent: Case A Halifax Ltd. had 2,500,000 common shares outstanding on 1 January
Question:
The following cases are independent:
Case A
Halifax Ltd. had 2,500,000 common shares outstanding on 1 January 20X8. On 1 March, 600,000 common shares were issued for cash. On 1 July, 300,000 common shares were repurchased and retired. On 1 November, 560,000 common shares were issued as a stock dividend.
Case B
Marvelex Ltd. had 6,000,000 common shares outstanding on 1 January 20X8. No shares were issued or retired during 20X8, which has a 31 December year-end. On 15 January 20X9, before the financial statements were finalized, a 1-for-4 reverse stock split took place.
Case C
Redux Ltd. had 2,860,000 common shares outstanding on 1 January 20X8. On 1 March, 286,000 common shares were issued as a 10% stock dividend. On 1 June, 200,000 common shares were repurchased and retired. On 1 November, 400,000 shares were issued as part of a contingent share agreement. The contingency had been met on 1 August 20X8, but the shares were not issued until 1 November 20X8.
Required:
For each case, calculate the weighted average number of common shares to use in the calculation of basic EPS in 20X8.
Step by Step Answer:
Intermediate Accounting Volume 2
ISBN: 9781260881240
8th Edition
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel