What is the number of shares that should be used, Accounting Basics

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What is the number of shares that should be used

Question: Knight Company, a calendar-year ?rm with 100,000 shares of common stock outstanding at the start of the year, declares a three-for-one stock split halfway through the year. The next day, Knight issues 200,000 new shares in conjunction with the acquisition of a new plant. What is the number of shares that should be used in computing basic earnings per share for the year?

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Accounting Basics: What is the number of shares that should be used

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