The Black company is currently preparing its earnings per share calculations for 2018. Net income for...
The Black company is currently preparing its earnings per share calculations for 2018. Net income for 2018 was $600,000. The weighted average number of shares of common stock was 200,00. The following additional information is available:
1. On January 1, 2017, the Black company issued 15,000 shares of common stock in a business combination. These shares were properly included in the weighted average number of shares of common stock presented above. As an incentive in the business combination, the Black company would repurchase the 15,000 shares of common stock for $80 per share on December 31, 2021 (put option) if the market price of the common stock was not greater than or equal to $80 per share on December 31, 2021. The average market price of the common stock during 2018 was $60 per share.
Required:
1. Using the FASB cpdification, explain the treatment of the put option on the calculation of diluted earnings per share for 2018. Provide FASB codification references for your answers.
2. Compute basic earnings per share and diluted earnings per share for 2018.
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The Black company is currently preparing its earnings
per share calculations for 2018. Net income for...
Thank you. Assume that the following data relative to Blossom Company for 2021 is available: Net...
Thank you.
Assume that the following data relative to Blossom Company for 2021 is available: Net Income $2,700,000 Transactions in Common Shares Jan. 1, 2021, Beginning number Mar. 1, 2021, Purchase of treasury shares June 1, 2021, Stock split 2-1 Nov. 1, 2021, Issuance of shares Change Cumulative 650,000 (48,000) 602,000 1,204,000 204,000 1,408,000 6% Cumulative Convertible Preferred Stock Sold at par, convertible into 180,000 shares of common (adjusted for split). $900,000 Stock Options Exercisable at the option price of...
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The information below pertains to Flint Company for 2018. $1,180,000 1,910,000 Net income for the year...
The information below pertains to Flint Company for 2018. $1,180,000 1,910,000 Net income for the year 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock Common stock, $10 par value Tax rate for 2018 Average market price of common stock 3,820,000 5,850,000 40% $25 per share There were no changes during 2018...
Stanley Department Stores reported net income of $731,000 for the year ended December 31, 2018 Additional...
Stanley Department Stores reported net income of $731,000 for the year ended December 31, 2018 Additional Information: 60,000 12,000 Common shares outstanding at Jan. 1. 2018 Incentive stock options (vested in 2017) outstanding throughout 2018 (Each option is exereisable for one common share at an exercise price of $20.50) During the year, the market price of Stanley's common stock averaged $24.6 per share. On Aug. 30 Stanley sold 15,000 common shares. Stanley's only debt consisted of $31,000 of 100 short...
6 Stanley Department Stores reported net income of $755,000 for the year ended December 31, 2018....
6 Stanley Department Stores reported net income of $755,000 for the year ended December 31, 2018. Additional Information: 0.5 points 75,000 12,000 eBook Common shares outstanding at Jan. 1, 2018 Incentive stock options (vested in 2017) outstanding throughout 2018 (Each option is exercisable for one common share at an exercise price of $22.00) During the year, the market price of Stanley's common stock averaged $26.4 per share. On Aug. 30 Stanley sold 15,000 common shares. Stanley's only debt consisted of...
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I need to calculate earnings per share and diluted earnings per share. Your employer just named...
I need to calculate earnings per share and diluted earnings per share. Your employer just named you hotshot accountant of the year and assigned you the task of calculating their earnings per share for the year ended 12/31/18. On 1/1/18 400,000 shares of common stock were outstanding. Net income for 2018 was $1,500,000 and their tax rate was 40%. The average market value for each share was $25. On April 1 they issued 97,000 shares of common. On June 1...
Sheridan Company had 808000 shares of common stock outstanding at December 31, 2018. In addition, it...
Sheridan Company had 808000 shares of common stock outstanding
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an option price of $37 per share. The average market price of
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shares that should be used in computing diluted earnings per share
for the year ended...
Clearly label the basic and diluted numerator / denominator = earnings per share similarly to the...
Clearly label the basic and diluted numerator / denominator =
earnings per share similarly to the format as the chart below.
On December 31, 2020, Berclair Inc. had 520 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares...
3rd answer is 3.95 and 4th is 9.76 Howard Inc's net income for 2018 was $33,180....
3rd answer is 3.95 and 4th is 9.76
Howard Inc's net income for 2018 was $33,180. The Company's weighted-average common shares outstanding for 2018 were 8,400. The company has no preferred stock. The market price per share of the common stock on December 31, 2018 was $12.50. The company sold 3,400 shares before the end of the year. There were no other stock transactions. What are Howard's earnings per share for 2018? Mutiple Choice $2.81 5664 None of the other...
Thank you.
Assume that the following data relative to Blossom Company for 2021 is available: Net Income $2,700,000 Transactions in Common Shares Jan. 1, 2021, Beginning number Mar. 1, 2021, Purchase of treasury shares June 1, 2021, Stock split 2-1 Nov. 1, 2021, Issuance of shares Change Cumulative 650,000 (48,000) 602,000 1,204,000 204,000 1,408,000 6% Cumulative Convertible Preferred Stock Sold at par, convertible into 180,000 shares of common (adjusted for split). $900,000 Stock Options Exercisable at the option price of...
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Stanley Department Stores reported net income of $731,000 for the year ended December 31, 2018 Additional Information: 60,000 12,000 Common shares outstanding at Jan. 1. 2018 Incentive stock options (vested in 2017) outstanding throughout 2018 (Each option is exereisable for one common share at an exercise price of $20.50) During the year, the market price of Stanley's common stock averaged $24.6 per share. On Aug. 30 Stanley sold 15,000 common shares. Stanley's only debt consisted of $31,000 of 100 short...
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Problem 16-8 The information below pertains to Indigo Company for 2018. $1,140,000 1,900,000 Net income for the year 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock Common stock, $10 par value Tax rate for 2018 Average market price of common stock 3,870,000 5,700,000 40% $25 per share There were no changes...
Sheridan Company had 808000 shares of common stock outstanding
at December 31, 2018. In addition, it had 159000 stock options
outstanding, which had been granted to certain executives, and
which gave them the right to purchase shares of Sheridan's stock at
an option price of $37 per share. The average market price of
Sheridan's common stock for 2018 was $50. What is the number of
shares that should be used in computing diluted earnings per share
for the year ended...
Clearly label the basic and diluted numerator / denominator =
earnings per share similarly to the format as the chart below.
On December 31, 2020, Berclair Inc. had 520 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares...
3rd answer is 3.95 and 4th is 9.76
Howard Inc's net income for 2018 was $33,180. The Company's weighted-average common shares outstanding for 2018 were 8,400. The company has no preferred stock. The market price per share of the common stock on December 31, 2018 was $12.50. The company sold 3,400 shares before the end of the year. There were no other stock transactions. What are Howard's earnings per share for 2018? Mutiple Choice $2.81 5664 None of the other...
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