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Elizabeth Corporation acquired Allen Corporation at the end of Year 1. Under terms of the acquisition agreement, Elizabeth agreed to provide former Allen shareholders 1,000 additional shares of Elizabeth stock for each new retail outlet opened during Year 2. Two new outlets were opened during Year 2:
What number of shares related to the openings of the new retail outlets should enter into the calculation of Elizabeth's basic earnings per share as of December 31, Year 2, the end of its fiscal year?
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