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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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
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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