What is the number of shares to be used in calculating


Problem - At December 31, 2016, St. John's Limited had 4,000,000 common shares outstanding (no preferred shares issued). An additional 250,000 common shares were issued on July 1, 2017, and 500,000 more on October 1, 2017. As well, on April 1, 2017, St. John's issued 10,000, $1,000 face value, 8% convertible bonds. Each bond is convertible into 40 common shares. No bonds were converted in 2017. What is the number of shares to be used in calculating basic earnings per share and diluted earnings per share, respectively, for 2017?

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Accounting Basics: What is the number of shares to be used in calculating
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