Intermediate Accounting
Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
bartleby

Concept explainers

Question
Book Icon
Chapter 20, Problem 20.11BE
To determine

To compute: The incremental shares to be included in the denominator of diluted EPS ratio.

Given information:

300,000 employee options are granted.

Each employee option can be exchanged for 2 shares of the common stock at the rate of $15 per share.

Average market price of N’s common share is $18 per share

Blurred answer
Students have asked these similar questions
You are computing annual earnings per share and required disclosures for Garcia Fencing based on​ company-provided information. Net income is $4,540,000.The​ weighted-average number of shares is 2,690,000. The​ year-end balance of outstanding shares is also 2,690,000. There are options outstanding all year to acquire 1,365,000 shares of common stock at $24 per share. The average price of the​ company's common stock is $39 per share. The firm has 99,000 shares of $45 par value​ nonconvertible, noncumulative preferred stock outstanding as of the beginning of the year. The dividend rate is $1.60 per share. The board of directors declared the annual dividend. The company is subject to a 30% tax rate.   a. Based on this​ information, compute basic and diluted earnings per share for the current year. b. Prepare the earnings per share disclosure on the income statement beginning with net income.
In June an investor purchased 250 shares of Oracle (an information technology company) stock at $18 per share. In August she purchased an additional 250 shares at $27 per share. In November she purchased an additional 590 shares at $29 per share. What is the weighted mean price per share? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) The weighted mean is $
XYZ Inc reported net income of S283,880 for the year and had 173,230 common shares outstanding throughout the year. Also outstanding all year were 42,540 employee stock options with each option giving the holder the right to purchase one common share at $9.35 per share. The average market price for the common shares during the year was $13.33 per share. Calculate the company's fully diluted earnings per share. a. $1.49 b. $1.66 C $1.64 d. $1.53 e $160

Chapter 20 Solutions

Intermediate Accounting

Ch. 20 - Prob. 20.11QCh. 20 - Hutchins Company had 200,000 shares of common...Ch. 20 - Prob. 20.2MCCh. 20 - Prob. 20.3MCCh. 20 - Prob. 20.4MCCh. 20 - Refer to the information about Hutchins Company in...Ch. 20 - Prob. 20.6MCCh. 20 - Prob. 20.1BECh. 20 - Prob. 20.2BECh. 20 - Computing Income for Basic EPS. Russo Watches, Ltd...Ch. 20 - Prob. 20.4BECh. 20 - Compute Weighted-Average Number of Shares...Ch. 20 - Compute Weighted-Average Number of Shares...Ch. 20 - Prob. 20.7BECh. 20 - Prob. 20.8BECh. 20 - Prob. 20.9BECh. 20 - Prob. 20.10BECh. 20 - Prob. 20.11BECh. 20 - Computing Basic and Diluted EPS, Options. Nicks...Ch. 20 - Computing Diluted EPS, Convertible Debt. Axelon...Ch. 20 - Computing Basic and Diluted EPS, Preferred Stock....Ch. 20 - Computing Weighted-Average Number of Common Shares...Ch. 20 - Prob. 20.3ECh. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Prob. 20.5ECh. 20 - Computing Basic and Diluted EPS, Convertible Bonds...Ch. 20 - Computing Basic and Diluted EPS, Convertible Bonds...Ch. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Computing Basic and Diluted EPS, Options,...Ch. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Prob. 20.12ECh. 20 - Prob. 20.1PCh. 20 - Prob. 20.2PCh. 20 - Computing Basic and Diluted EPS. Convertible...Ch. 20 - Prob. 20.4PCh. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Prob. 20.7PCh. 20 - Prob. 20.8PCh. 20 - Prob. 1JCCh. 20 - Prob. 1FSCCh. 20 - Prob. 1SSCCh. 20 - Basis for Conclusions Case 1: Antidilutive...Ch. 20 - Basis for Conclusions Case 2: Treasury Stock...
Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education