On December 31, 2023, Berclair Incorporated had 600 million shares of common stock and 17 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. • On March 1, 2024, Berclair purchased 120 million shares of its common stock as treasury stock. Berclair issued a 6% common stock dividend on July 1, 2024. • • • . Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2024, was $850 million. Also outstanding at December 31 were 72 million incentive stock options granted to key executives on September 13, 2019. • The options were exercisable as of September 13, 2023, for 72 million common shares at an exercise price of $60 per share. • During 2024, the market price of the common shares averaged $90 per share. • The options were exercised on September 1, 2024. Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2024. (Shares for stock options and conversion of convertible securities have been adjusted for any stock split or stock dividend.) Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
On December 31, 2023, Berclair Incorporated had 600 million shares of common stock and 17 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. • On March 1, 2024, Berclair purchased 120 million shares of its common stock as treasury stock. Berclair issued a 6% common stock dividend on July 1, 2024. • • • . Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2024, was $850 million. Also outstanding at December 31 were 72 million incentive stock options granted to key executives on September 13, 2019. • The options were exercisable as of September 13, 2023, for 72 million common shares at an exercise price of $60 per share. • During 2024, the market price of the common shares averaged $90 per share. • The options were exercised on September 1, 2024. Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2024. (Shares for stock options and conversion of convertible securities have been adjusted for any stock split or stock dividend.) Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Urmila ben
Transcribed Image Text:On December 31, 2023, Berclair Incorporated had 600 million shares of common stock and 17 million
shares of 9%, $100 par value cumulative preferred stock issued and outstanding.
•
•
•
On March 1, 2024, Berclair purchased 120 million shares of its common stock as treasury stock.
Berclair issued a 6% common stock dividend on July 1, 2024.
Four million treasury shares were sold on October 1.
Net income for the year ended December 31, 2024, was $850 million.
Also outstanding at December 31 were 72 million incentive stock options granted to key executives
on September 13, 2019.
• The options were exercisable as of September 13, 2023, for 72 million common shares at an
exercise price of $60 per share.
During 2024, the market price of the common shares averaged $90 per share.
• The options were exercised on September 1, 2024.
Required:
Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2024. (Shares
for stock options and conversion of convertible securities have been adjusted for any stock split or stock
dividend.)
Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should
be entered as 10).
Basic
Diluted
Numerator
÷
Denominator
= Earnings per Share
÷
0
÷
=
0
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 7 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education