Major Corporation had 40,000 shares of common stock outstanding during 2019 with the following characteristics: Par value per share $10 Average market value per share $50 Market value per share on 12/31/2016 $ 60 The company also has compensatory share options to purchase 5,000 shares of common stock at $40 a share during the year. The unrecognized compensation cost (net of tax) related to these share options is $5 per share. Net income for the year was $75,000. Required: Compute the basic and diluted earnings per share for Major Corporation
Major Corporation had 40,000 shares of common stock outstanding during 2019 with the following characteristics: Par value per share $10 Average market value per share $50 Market value per share on 12/31/2016 $ 60 The company also has compensatory share options to purchase 5,000 shares of common stock at $40 a share during the year. The unrecognized compensation cost (net of tax) related to these share options is $5 per share. Net income for the year was $75,000. Required: Compute the basic and diluted earnings per share for Major Corporation
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 23E
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Major Corporation had 40,000 shares of common stock outstanding during 2019 with the following characteristics: | |||||||
Par value per share | $10 | ||||||
Average market value per share | $50 | ||||||
Market value per share on 12/31/2016 | $ 60 | ||||||
The company also has compensatory share options to purchase 5,000 shares of common stock at $40 a share during | |||||||
the year. The unrecognized compensation cost (net of tax) related to these share options is $5 per share. | |||||||
Net income for the year was $75,000. | |||||||
Required: | |||||||
Compute the basic and diluted earnings per share for Major Corporation. | |||||||
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