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 860 X 1,446 Answer is complete but not entirely correct. Denominator Earnings per Share 1.94 2.47 444 585 - $
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 860 X 1,446 Answer is complete but not entirely correct. Denominator Earnings per Share 1.94 2.47 444 585 - $
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 10MC
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Question
paresh
![On December 31, 2023, Berclair Incorporated had 500 million shares of common stock and 20 million shares of 9%, $100 par value
cumulative preferred stock issued and outstanding.
. On March 1, 2024, Berclair purchased 60 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 $1,000 million.
• Also outstanding at December 31 were 81 million incentive stock options granted to key executives on September 13, 2019.
• The options were exercisable as of September 13, 2023, for 81 million common shares at an exercise price of $50 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
$
$ 1,446
860 X
Answer is complete but not entirely correct.
Earnings per Share
1.94
2.47
Denominator
444
585](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F52a3c907-bf4c-4910-b539-305e76ab9ee5%2F006ed549-4ca2-4105-9f22-a35391f0aab3%2Fvmxzojk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On December 31, 2023, Berclair Incorporated had 500 million shares of common stock and 20 million shares of 9%, $100 par value
cumulative preferred stock issued and outstanding.
. On March 1, 2024, Berclair purchased 60 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 $1,000 million.
• Also outstanding at December 31 were 81 million incentive stock options granted to key executives on September 13, 2019.
• The options were exercisable as of September 13, 2023, for 81 million common shares at an exercise price of $50 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
$
$ 1,446
860 X
Answer is complete but not entirely correct.
Earnings per Share
1.94
2.47
Denominator
444
585
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