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In: Accounting

You are given the following information about KER Ltd.: - 30,000 common shares outstanding on January...

You are given the following information about KER Ltd.:

- 30,000 common shares outstanding on January 1,2017

- 2,000 shares sold on March 1, 2017

- 1,000 shares sold on September 1, 2017

- 2 for 1 stock split recorded on October 1, 2017

- Net Income for the year $340,000

Calculate the weighted average number of shares outstanding for KER for the year ended December 31, 2017. Round to the nearest whole number.

Solutions

Expert Solution

Weighted average share outstanding

Date Shares Time Weighted average number of shares
Jan 1 30000*2 60000*12/12 60000
March 1 2000*2 4000*10/12 3333
Sep 1 1000*2 2000*4/12 667
Total 64000

Weighted average number of shares outstanding = 64000 Shares

ekkarill92 answered 2 years ago
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