Reference no: EM132610838

Question - Sunland Corporation Ltd. has the following capital structure at the following fiscal years ended December 31:

2020 2019

Number of common shares 630,000 480,000

Number of non-convertible, non-cumulative preferred A shares 30,000 30,000

Amount of 6% convertible bonds $1,000,000 $1,000,000

The following additional information is available.

1. On July 31, 2020, Sunland Corporation exchanged common shares for a large piece of equipment. This was the only transaction that resulted in issuance of common shares in 2020.

2. Income before discontinued operations for 2020 was $1,400,000, and a loss from discontinued operations of $220,000 was recorded, net of applicable tax recovery.

3. During 2020, dividends in the amount of $4 per share were paid on the preferred A shares.

4. Each $1,000 bond can be converted into 25 common shares.

5. There were unexercised stock options, outstanding since 2017, that allow holders to purchase 20,000 common shares at $4.00 per share.

6. Written warrants to purchase 10,000 common shares at $7.00 per share were outstanding at the end of 2019, and no warrants were exercised in 2020.

7. The average market value of the common shares in 2020 was $5.00.

8. Sunland's tax rate is 20%.

9. Sunland declared and paid a $5,000 dividend to common shareholders on June 1, 2020.

Required - What is the weighted average number of common shares that would be used in calculating earnings per share for the year ended December 31, 2020.