As part of its executive compensation plan, Vertovec Inc. granted 54,000 of its no-par common shares to execu tives, subject to forfeiture if employment is terminated within three years. Vertovec's common shares have a mar ket price of $5 per share on January 1, 2020, the grant date of the restricted stock award, as well as on December 31, 2021. 800,000 shares were outstanding at January 1, 2021. Net income for 2021 was $120,000. Required: Compute Vertovec's basic and diluted earnings per share for the year ended December 31, 2021.
As part of its executive compensation plan, Vertovec Inc. granted 54,000 of its no-par common shares to execu tives, subject to forfeiture if employment is terminated within three years. Vertovec's common shares have a mar ket price of $5 per share on January 1, 2020, the grant date of the restricted stock award, as well as on December 31, 2021. 800,000 shares were outstanding at January 1, 2021. Net income for 2021 was $120,000. Required: Compute Vertovec's basic and diluted earnings per share for the year ended December 31, 2021.
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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PLEASE ANSWER WITH DETAILED WORKING
![E 19-22
EPS; restricted
stock
LO19-11
As part of its executive compensation plan, Vertovec Inc. granted 54,000 of its no-par common shares to execu
tives, subject to forfeiture if employment is terminated within three years. Vertovec's common shares have a mar-
ket price of $5 per share on January 1, 2020, the grant date of the restricted stock award, as well as on December
31, 2021. 800,000 shares were outstanding at January 1, 2021. Net income for 2021 was $120,000.
Required:
Compute Vertovec's basic and diluted earnings per share for the year ended December 31, 2021.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F156316e8-e058-4592-8f18-83c641282f8d%2Fc3b34974-9e91-4afd-b93c-9669d2430dcb%2Fk0yyrh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:E 19-22
EPS; restricted
stock
LO19-11
As part of its executive compensation plan, Vertovec Inc. granted 54,000 of its no-par common shares to execu
tives, subject to forfeiture if employment is terminated within three years. Vertovec's common shares have a mar-
ket price of $5 per share on January 1, 2020, the grant date of the restricted stock award, as well as on December
31, 2021. 800,000 shares were outstanding at January 1, 2021. Net income for 2021 was $120,000.
Required:
Compute Vertovec's basic and diluted earnings per share for the year ended December 31, 2021.
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