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At December 31, 2018, Galatia Inc. had 250,000 shares of common stock outstanding. On October 1,...

At December 31, 2018, Galatia Inc. had 250,000 shares of common stock outstanding. On October 1, 2019, an additional 60,000 shares of common stock were issued for cash. Galatia also had $2,000,000 of 10% convertible bonds outstanding at December 31, 2019, which are convertible into 50,000 shares of common stock. The bonds are dilutive in the 2019 earnings per share computation. No bonds were issued or converted into common stock during 2019. What is the number of shares that should be used in computing diluted earnings per share for the year ended December 31, 2019?

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The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

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