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What is number of shares that should be used in computing

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Computer, Inc. had 300,000 ordinary shares and outstanding at December 31, 2019. On July 1, 2020, an additional 50,000 shares of ordinary were issued for cash. Computer also had unexercised stock options to purchase 40,000 shares of ordinary at P15 per shares outstanding at the beginning and end of 2020. The average market price of Computer's ordinary was P20 during 2020.

Problem 1: What is the number of shares that should be used in computing diluted earnings per share?

a. 325,000

b. 335,000

c. 360,000

d. 365,000

Reference no: EM132673646

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