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Problem - Gratitude Corporation was incorporated on December 31, 2019 and had 3,000,000 outstanding ordinary shares on January 1, 2021. During 2021, the following transactions had occurred: on March 1, Gratitude issued 600,000 shares of its authorized ordinary shares; April 1, 20% shares dividend declaration; July 1, 1,000,000 ordinary shares were issued to acquire a parcel of land; October 1, Gratitude acquired 200,000 of its own shares; December 1, all outstanding shares on this date were recalled and split 2 for 1.
Required -
1. How many shares are outstanding on December 31, 2021?
2. What is the number of shares for calculating earnings per share?
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Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $3,600 from sales $201,000, variable costs $175,000, and fixed costs $29,600. If the Big Bart line is eliminated, $19,100 of fixed costs will rema..
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