How many shares are outstanding on december

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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?

Reference no: EM132953084

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