Problem
Jumbo Corporation reported the following information about its stock on its December 31, 2015, balance sheet:
Preferred stock, $100 par value, 6% cumulative, 30,000 shares authorized 1,000 shares issued and outstanding $100,000
Common stock, $10 par value, 150,000 shares authorized 50,000 shares issued and outstanding 500,000
Jumbo Corporation engaged in the following stock transactions during 2016:
Mar. 1 Issued 10,000 shares of common stock for cash.
Apr. 1 Purchased 2,000 shares of common stock as treasury stock.
Aug. 1 Resold 1,000 shares of treasury stock.
Sept. 1 Declared and distributed a 50% stock dividend on common stock.
Calculate the number of shares that Jumbo would use to calculate basic EPS for its 2016 income statement. Round your answer to the nearest whole number.