Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN: 9781111581565
Author: Gaylord N. Smith
Publisher: Cengage Learning
Bartleby Related Questions Icon

Related questions

Question
On December 31, 2023, Berclair Incorporated had 220 million shares of common stock and 4 million shares of 9%, $100
par value cumulative preferred stock issued and outstanding.
On March 1, 2024, Berclair purchased 32 million shares of its common stock as treasury stock.
• Berclair issued a 5% common stock dividend on July 1, 2024.
Four million treasury shares were sold on October 1.
.Net income for the year ended December 31, 2024, was $200 million.
Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September
13, 2019.
The options were exercisable as of September 13, 2023, for 30 million common shares at an exercise price of $56
per share.
During 2024, the market price of the common shares averaged $70 per share.
Required:
Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2024. (Shares for stock
options and conversion of convertible securities have been adjusted for any stock split or stock dividend.)
Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as
10).
Numerator
Denominator =
Earnings per Share
Basic
$
164 +
=
0
Diluted
$
164
+
0
expand button
Transcribed Image Text:On December 31, 2023, Berclair Incorporated had 220 million shares of common stock and 4 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2024, Berclair purchased 32 million shares of its common stock as treasury stock. • Berclair issued a 5% common stock dividend on July 1, 2024. Four million treasury shares were sold on October 1. .Net income for the year ended December 31, 2024, was $200 million. Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September 13, 2019. The options were exercisable as of September 13, 2023, for 30 million common shares at an exercise price of $56 per share. During 2024, the market price of the common shares averaged $70 per share. Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2024. (Shares for stock options and conversion of convertible securities have been adjusted for any stock split or stock dividend.) Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Numerator Denominator = Earnings per Share Basic $ 164 + = 0 Diluted $ 164 + 0
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Excel Applications for Accounting Principles
Accounting
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Cengage Learning
Text book image
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Text book image
Financial & Managerial Accounting
Accounting
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Text book image
Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning
Text book image
Corporate Financial Accounting
Accounting
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Text book image
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College