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You, the Senior Accountant of Everst Co. are preparing the earnings per share calculation for the year ended December 31, 2020. The following is a summary of Everst Co.'s common share activities for the year ending December 31, 2020: 125,000 common shares were issued and outstanding on January 1, 2020. 25,000 common shares were issued for cash on April 1, 2020. A 10% stock dividend on Everst Co.'s common shares was declared and distributed on April 30, 2020. 10,000 common shares were redeemed and returned to treasury on December 1, 2020 REQUIRED: Calculate the weighted average number of common shares using the workspace provided. Round your final answer ONLY. Once completed, answer the following multiple-choice questions. No marks are given for completing the workspace. All multiple-choice answers must be completed in EXCEL. Select the best answer from the drop-down lists in the blue boxes provided below the question. 11 2 (1). How does the 10% stock dividend impact the opening common share balance of 125,000 common shares? A. Stock dividends only impact common shares from the date of declaration till the end of the year. B. 12,500 common shares will be added to the opening balance as an adjustment. 137.500 common shares will be added to the opening halance as an adinstment TO the drop-down lists in the blue boxes provided below the question. 11 A B. 14 12. (1). How does the 10% stock dividend impact the opening common share balance of 125,000 common shares? TJ Stock dividends only impact common shares from the date of declaration till the end of the year. 12.500 common shares will be added to the opening balance as an adjustment. 5 C. 137,500 common shares will be added to the opening balance as an adjustment. D. 12,500 common shares will be subtracted from the opening balance as an adjustment. #1 Answer: 5 A. (2). How does the 10% stock dividend impact the April 1st issuance of 25,000 common shares? Stock dividends only impact common shares from the date of declaration till the end of the year. B. A negative adjustment (decrease) of 10% common shares. A positive adjustment (increase) of 10% common shares. D. No impact as the stock dividend and the issuance of 25,000 common shares occurred in the same month. C. #2 Answer: 12 (4). What is the fraction of the year (# of months) to consider for the 10,000 common shares redeemed? A 12/12 35 B 3/12 36 1/12 37 D. 9/12 38 #14 Answer: 39 40 (5). (2 marks) What is the weighted average number of common shares calculated? $1 A. 157.292 2 B. 142,916 C. 157,291 D. 158,958 #5

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