INTERMEDIATE ACCOUNTING ACCESS
9th Edition
ISBN: 9781260790177
Author: SPICELAND
Publisher: MCGRAW-HILL CUSTOM PUBLISHING
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Textbook Question
Chapter 19, Problem 19.15E
EPS; net loss; nonconvertible
• LO19–5, LO19–6, LO19–7
At December 31, 2017, Albrecht Corporation had outstanding 373,000 shares of common stock and 8,000 shares of 9.5%, $100 par value cumulative, nonconvertible preferred stock. On May 31, 2018, Albrecht sold for cash 12,000 shares of its common stock. No cash dividends were declared for 2018. For the year ended December 31, 2018, Albrecht reported a net loss of $114,000.
Required:
Calculate Albrecht’s net loss per share for the year ended December 31, 2018.
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Exercise 19-13 (Algo) EPS; treasury stock; new shares; stock dividends; two years [LO19-5, 19-6]
The Alford Group had 340,000 shares of common stock outstanding at January 1, 2021. The following activities affected common
shares during the year. There are no potential common shares outstanding.
2021
Feb. 28 Purchased 30,000 shares of treasury stock.
Oct. 31 Sold the treasury shares purchased on February 28.
Nov. 30 Issued 120,000 new shares.
Dec. 31 Net income for 2021 is $495,000.
2022
Jan. 15 Declared and issued a 2-for-1 stock split.
Dec. 31 Net income for 2022 is $495,000.
Required:
1. Determine the 2021 EPS. (Do not round intermediate calculations.)
2. Determine the 2022 EPS.
3. At what amount will the 2021 EPS be presented in the 2022 comparative financial statements?
(For all requirements, Enter your answers in thousands.)
Numerator / Denominator = Earnings per Share
1.
%3D
2.
%3D
3.
%3D
Exercise 19-16 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold
[LO19-5, 19-6, 19-7]
On December 31, 2023, Berclair Incorporated had 540 million shares of common stock and 6 million shares of 9%, $100 par value
cumulative preferred stock issued and outstanding.
. On March 1, 2024, Berclair purchased 12 million shares of its common stock as treasury stock.
• Berclair issued a 5% common stock dividend on July 1, 2024.
•. Two million treasury shares were sold on October 1.
• Net Income for the year ended December 31, 2024, was $1,000 million.
Required:
Compute Berclair's earnings per share for the year ended December 31, 2024.
Note: Do not round Intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
$
Numerator
946+
Denominator
=
Earnings per Share
10
Exercise 19-17 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options [LO19-5, 19-6, 19-7, 19-8]
On December 31, 2020, Berclair Inc. had 480 million shares of common stock and 5 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 136 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2021, was $850 million. Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September 13, 2013. The options were exercisable as of September 13, 2020, for 30 million common shares at an exercise price of $56 per share. During 2021, 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…
Chapter 19 Solutions
INTERMEDIATE ACCOUNTING ACCESS
Ch. 19 - Prob. 19.1QCh. 19 - Prob. 19.2QCh. 19 - The Tax Code differentiates between qualified...Ch. 19 - Stock option (and other share-based) plans often...Ch. 19 - What is a simple capital structure? How is EPS...Ch. 19 - Prob. 19.6QCh. 19 - Blake Distributors had 100,000 common shares...Ch. 19 - Why are preferred dividends deducted from net...Ch. 19 - Prob. 19.9QCh. 19 - The treasury stock method is used to incorporate...
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