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Expresso Company had the following information related to common and preferred shares during the year:
Common shares outstanding 1/1 568,75 0
Common shares repurchased 3/1 17,500
Conversion of preferred shares 7/1 32,500
Common shares repurchased 12/ 1 29,250
Expresso reported net income of $1,625,000 at December 31.
Problem 1: What amount of shares should Expresso use as the denominator in the computation of basic earnings per share?
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