Problem
Maxwell Corp. had the following information related to common and preferred shares during the year.
Common shares outstanding, 1/1 700,000
Common shares repurchased, 3/31 20,000
Conversion of preferred shares, 6/30 40,000
Common shares repurchased, 12/1 36,000
Maxwell reported net income of $2,000,000 at December 31. What amount of shares should Maxwell use as the denominator in the computation of basic earnings per share?