2A2V ROY COMPANY HAD 120,000 COMMON SHARES AND 100,000 PREFERRED SHAR...

83.

CSO: 2A2e

LOS: 2A2v

Roy company had 120,000 common shares and 100,000 preferred shares outstanding at

the close of the prior year. During the current year Roy repurchased 12,000 common

shares on March 1, sold 30,000 common shares on June 1, and sold an additional 60,000

common shares on November 1. No change in preferred shares outstanding occurred

during the year. The number of shares of stock outstanding to be used in the calculation

of basic earnings per share at the end of the current year is

a.

100,000.

b.

137,500.

c.

198,000.

d.

298,000.