[ToCPA2011]

Anyone uses Becker and know how the question(CPA-01209) get the correct answer b? I don’t understand how they come up with 200,000 shares for year 1. The question only mention year 2 has two changes on common shares, not year 1.

[Skippy1997]

Since they are including comparative financial statements (both year 1 and year 2) you have to account for the 2-1 stock split at the earliest year included. That is why Year 1 has 200,000 shares because you need to adjust your 100,000 year 1 shares by the 2-1 split.

Hope that helps

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[ToCPA2011]

Thanks, Skippy 1997. I see you scheduled three parts this window. I am only taking two. Any advice for me?

[Author]

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