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Question - ABC Co. had 150,000 common shares outstanding at January 1. On May 1, ABC issued 45,000 additional shares of common stock. On October 1, ABC issued 10,000 shares of convertible, cumulative preferred shares. After year-end, but before issuing financial statements, ABC declared a 3 for 1 common stock split. What amount should ABC use for its Basic EPS denominator?
a. 176,250
b. 240,000
c. 540,000
d. 697,500
e. 232,500
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