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    Accounting questions

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    p19-1
    Apple Inc.
    Steve Jobs' restricted stock
    tax effects

    p19-6
    Ainsworth Inc. EPS, net loss, stock dividend, preferred stock, treasury stock, extraordinary loss

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    P19-6

    1. We first calculate the weighted average shares outstanding (figures in million)
    Beginning shares = 600. Since there is a stock dividend of 5% on June 12, the beginning shares will be adjusted and will be 600 X 1.05 = 630. These shares are outstanding till April 30 = 4 months.
    On April 30, 30 shares are repurchased, adjusting for stock dividend = 30X1.05 = 31.5. Outstanding shares = 630-31.5 = 598.5. These are outstanding till Aug 30 = 4 months
    On Aug 30, 12 shares are resold, so outstanding shares = 598.5 + 12 = 610.5. These are outstanding till year end = 4 months
    Weighted average ...

    Solution Summary

    The solution explains two accounting questions P19-6 Ainsworth Inc - calculation of net loss per share, EPS presentation and P19-1 Apple Inc - Steve Jobs restricted stock, tax effectos

    $2.19

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