Exercise 16B-15 (Part Level Submission)
Ivanhoe Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,770,000 shares of $10 par common stock. At no time has
Ivanhoe issued any potentially dilutive securities. Listed below is a summary of Ivanhoe's common stock activities.
1. Number of common shares issued and outstanding at December 31, 2015
2,050,000
2. Shares issued as a result of a 10% stock dividend on September 30, 2016
205,000
3. Shares issued for cash on March 31, 2017
1,910,000
Number of common shares issued and outstanding at December 31, 2017
4,165,000
4. A 2-for-1 stock split of Ivanhoe's common stock took place on March 31, 2018
(a)
Compute the weighted-average number of common shares used in computing earnings per common share for 2016 on the 2017 comparative income
statement.
shares