Vent, Inc. reported net income of $770,000 for 2018. Vent sold 15,000 shares of treasury stock acquired in a previous year on July 1 and 15,000 new shares on November 1. At year-end, 180,000 shares were outstanding. Vent had 20,000 shares of $100 par value 7% preferred stock outstanding all year. Vent paid dividends to the preferred shareholders. The weighted average number of common shares used to compute earnings per share for 2018 is

The weighted average number of shares used to compute earnings per share for 2018 is 160,000

Explanation:

At the beginning of the year Vent would have had 180,000 shares less the two new 15,000 shares newly issued(180,000-15,000-15000)=150,000

Outstanding common stock at beginning of the year 150,000*12/12=150,000

Shares issued on July 1      15,000*6/12                                                =7500

Shares issued on November 1   15,000*2/12                                         =2,500

Weighted average number of shares                                                     160,000

The number with which to compute earnings per share is 160,000 shares as shown above.