Intermediate Accounting, 17th Edition
Intermediate Accounting, 17th Edition
17th Edition
ISBN: 9781119503682
Author: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Publisher: WILEY
Question
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Chapter 16, Problem 1CRC
To determine

Earnings per share: An amount available as earnings for each of the common shares outstanding for a reporting period is known as earnings per share.

(a) To identify: To identify the authoritative literature for share-based payment compensation plans.

To determine

(b) To discuss: To discuss the objectives for accounting the stock compensation and fair value measurement.

To determine

(c) To identify: To identify the criteria to record the expense on employee stock purchase plan.

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Aerotrino produces and sells popular t-shirts. Following is information about its t-shirts for 2014: Selling price $15.00 per t-shirt Variable costs: Production (manufacturing costs) - $3.50 per t-shirt Selling & administration - $1.00 per t-shirt Fixed costs: Production (manufacturing costs) - $1,000,000 per year Selling & administration - $2,000,000 per year During 2014, the company produced 400,000 t-shirts and sold 350,000 of them. Assume that there was no beginning inventory. How much is the net income under variable costing?
ROE?
ANSWER THIS GENERAL ACCOUNTING PROBLEM
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