2A2V RAY COMPANY HAS 530,000 COMMON SHARES OUTSTANDING AT YEAR-END....

81.

CSO: 2A2e

LOS: 2A2v

Ray Company has 530,000 common shares outstanding at year-end. At December 31, for

basic earnings per share purposes, Ray computed its weighted average number of shares

as 500,000. Prior to issuing its annual financial statements, but after year-end, Ray split

its stock 2 for 1. Ray's weighted average number of shares to be used for computing

annual basic earnings per share is

a.

500,000.

b.

530,000.

c.

1,000,000.

d.

1,060,000.