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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
Transactions Reported in Classification, If an item needs to be reported on the balance sheet, select "Balance Sheet" and if an item need not be reported at all, select "Not to be Reported."
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