Kolanso Inc. had 890, 400 common shares outstanding on 1 January 20X8. On 1 June, the company entered into an agreement to purchase the shares of Leroy Co. As part of this acquisition transaction, Kolanso agreed to issue 134,000 new common shares to the previous shareholders of Leroy if the company had total sales of $8.0 million for the first year. The goal was met by 31 December 20X8 and the shares were issued on 1 February 20X9. Also during the year, the company repurchased 38, 500 shares on 1 December. Required: Calculate the company's weighted average number of shares outstanding for the basic EPS calculation for the year ended 31 December 20X8. (Do not round intermediate calculations and round your answer to nearest whole number.)

Kolanso Inc. had 890, 400 common shares outstanding on 1 January 20X8. On 1 June, the company entered into an agreement to purchase the shares of Leroy Co. As part of this acquisition transaction, Kolanso agreed to issue 134,000 new common shares to the previous shareholders of Leroy if the company had total sales of $8.0 million for the first year. The goal was met by 31 December 20X8 and the shares were issued on 1 February 20X9. Also during the year, the company repurchased 38, 500 shares on 1 December. Required: Calculate the company's weighted average number of shares outstanding for the basic EPS calculation for the year ended 31 December 20X8. (Do not round intermediate calculations and round your answer to nearest whole number.)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 1MC

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