Anson Company had 8,000,000 shares of common stock outstanding on December 31, Year 11. Anson issued an additional 1,200,000 shares of common stock on April 1, Year 12, and 1,000,000 more on July 1, Year 12. On October 1, Year 12, Anson issued 50,000 of $1,000 face value 4% convertible bonds. Each bond is convertible into 20 shares of common stock. No bonds were converted into common stock in Year 12. What is the number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively, in Year 12?
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Anson Company had the following weighted average outstanding shares position for the year 12 for basic EPS and Diluted EPS.
So, 9,400,000 will be used for calculating basic earnings per share and 9,650,000 will be used for calculating diluted earnings per share.
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