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Intermediate Accounting II - Chapter 16 Homework

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Question;E16-15 (Weighted-Average Number of Shares) Newton Inc. uses a calendar year for financial;reporting. The;company is authorized to issue;9,000,000;shares of;$10;par common stock. At no time has Newton issued any potentially;dilutive securities. Listed below is a summary of Newton?s common stock;activities.;1. Number of common;shares issued and outstanding at December 31, 2012;2,000,000;2. Shares issued as;a result of a 10% stock dividend on September 30, 2013;200,000;3. Shares issued for;cash on March 31, 2014;2,000,000;Number of common;shares issued and outstanding at December 31, 2014;4,200,000;4. A 2-for-1 stock;split of Gogean?s common stock took place on March 31, 2015;Instructions;(a) Compute the weighted average number of;common shares used in computing earnings per;common share for 2013 on the;2014 comparative income statement.;Text title;Formula;Text title;Percentage;Text title;Formula;Text title;Formula;Shares;outstanding;Formula;(b) Compute the weighted average number of;common shares used in computing earnings per;common share for 2014 on the;2014 comparative income statement.;Text title;Formula;Text title;Formula;Shares;outstanding;Formula;(c) Compute the weighted average number of;common shares to be used in computing earnings per;common share for 2014 on the;2015 comparative income statement.;Text title;Formula;Text title;Number;Shares;outstanding;Formula;(d) Compute the weighted average number of;common shares to be used in computing earnings per;common share for 2015 on the;2015 comparative income statement.;Text title;Number;Text title;Number;Text title;Formula;Text title;Formula;Shares;outstanding;Formula

 

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