Hi, im confusing with the answer
Oregon Corp.'s stock transactions during the year were as follows:
January 1: 320,000 shares outstanding.
April 1: 1-for-2 reverse stock split occurred.
July 1: Acquisition of Smith, Inc. in exchange for issuance of 60,000 shares.
October 1: 30,000 shares issued for cash.
What is Oregon’s weighted average number of shares outstanding?
Answer
January 1: initial shares 160,000 × 12 = 1,920,000
July 1: Smith acquisition 60,000 × 6 = 360,000
October 1: cash issuance 30,000 × 3 = 90,000
Total: 2,370,000
Oregon’s weighted average shares = 2,370,000 / 12 = 197,500.
Im Confusing with the July 1: Smith acquisition, it is supposed to be 60000 x 3 right?, because it only last for three month ( From July → October 1), so why it is 60000 x6
Is the answer is wrong ?