Micky and Donald Corp

Micky and Donald Corp.was founded on January 1,2018.At that time it issued 120,000 ordinary shares and 20,000,$30,cumulative 5% preferred shares.Subsequent transactions affecting its shareholdings follow.
2018
• September 1: Micky issued 300,000,$30,non-cumulative 6% preferred shares.
• December 1: Micky issued 80,000 ordinary shares.
• Dividends were not declared in 2018.
2019
• February 1: Micky issued 30,000 ordinary shares.
• June 1: Micky repurchased 50,000 shares and held them as treasury shares.
• July 1: Micky declared and paid $45,000 in dividends on the cumulative preferred shares, $270,000 on the non-cumulative preferred shares,and $180,000 on the ordinary shares.
• September 1: Micky reissued (sold)the 50,000 shares held in treasury.
• October 1: Micky declared and issued a 3-for-l stock split on the ordinary shares.
• December 1: Micky declared and paid $15,000 in dividends on the cumulative preferred shares,$270,000 on the non-cumulative preferred shares,and $180,000 on the ordinary shares.
• Micky's net income for the year ended December 31,2019 was $2,000,000.Its tax rate was 30%.
Required:
a.What was Micky's weighted average number of ordinary shares outstanding in 2019?
b.What was Micky's basic EPS in 2019?

Correct Answer:

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a.
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