Reference no: EM132744733

Newton Inc. uses a calendar year for financial reporting. Listed below is a summary of Newton's common stock activities.

Number of common shares issued and outstanding at December 31, 2018       3,000,000

Shares issued as a result of a 20% stock dividend on September 30, 2019      600,000

Shares issued for cash on March 31, 2020                                                 1,200,000

Number of common shares issued and outstanding at December 31, 2020            4,800,000

Problem 1: Compute the weighted-average number of common shares used in computing earnings per common share for 2019 on the 2020 comparative income statement.

a. 3,000,000

b. 3,600,000

c. 3,150,000

d. 2,700,000