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Question: sage inc uses a calendar year for financial reporting the...

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Sage Inc. uses a calendar year for financial reporting. The company is authorized to issue  8,480,000 shares of $ 10 par common stock. At no time has Sage issued any potentially dilutive securities. Listed below is a summary of Sage’s common stock activities.

1. Number of common shares issued and outstanding at December 31, 2015

1,900,000

2. Shares issued as a result of a  10% stock dividend on September 30, 2016

190,000

3. Shares issued for cash on March 31, 2017

2,130,000

Number of common shares issued and outstanding at December 31, 2017

4,220,000

4. A 2-for-1 stock split of Sage’s common stock took place on March 31, 2018

a. Compute the weighted-average number of common shares used in computing earnings per common share for 2016 on the 2017 comparative income statement.

b. Compute the weighted-average number of common shares used in computing earnings per common share for 2017 on the 2017 comparative income statement.

c. Compute the weighted-average number of common shares to be used in computing earnings per common share for 2017 on the 2018 comparative income statement.

d. Compute the weighted-average number of common shares to be used in computing earnings per common share for 2018 on the 2018 comparative income statement.

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