SWitter House is a calendar-year firm with 460 million common shares outstanding throughout 2024 and 2025. As part of its executivecompensation plan, at January 1, 2023, the company had issued 40 million executive stock options permitting executives to buy 40million shares of stock for $10 within the next eight years, but not prior to January 1, 2026.• The fair value of the options was estimated on the grant date to be $3 per option.In 2024, Witter House began granting employees stock awards rather than stock options as part of its equity compensationplans and granted 25 million restricted common shares to senior executives at January 1, 2024.⚫ The shares vest three years later.• The fair value of the stock was $16 per share on the grant date.⚫ The average price of the common shares was $16 and $25 during 2024 and 2025, respectively..The stock options qualify as an incentive plan.. The restricted stock does not.The company's net income was $310 million and $320 million in 2024 and 2025, respectively.Required:1. Compute basic and diluted earnings per share for Witter House in 2024.2. Compute basic and diluted earnings per share for Witter House in 2025.Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in millions (i.e., 10,000,000should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Round "Denominator" answers to 2decimal places.NumeratorDenominator=Earnings per shareBasic$310460 =$0.671.Diluted$310460.68$0.68Basic$320460=$0.702.Diluted$320=$0.71

It represents the portion of a company's profit allocated to each outstanding share of common stock.…

Answered: Witter House is a calendar-year firm…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Early in 2021, Robbinsville Press was organized with authorization to issue 100,000 shares of $100 par value preferred stock and 500,000 shares of $1 par value common stock. Ten thousand shares of the preferred stock were issued at par, and 170,000 shares of common stock were sold for $15 per share. The preferred stock pays an 8 percent cumulative dividend. During the first four years of operations (2021 through 2024), the corporation earned a total of $1,385,000 and paid dividends of 75 cents per share in each year on its outstanding common stock. Required: Prepare the stockholders' equity section of the balance sheet at December 31, 2024.
Purple Cab Company had 60,000 shares of common stock outstanding on January 1, 2024. On April 1, 2024, the company issued 30,000 shares of common stock. The company had outstanding fully vested incentive stock options for 6,000 shares exercisable at $11 that had not been exercised by its executives. The average market price of common stock was $13. The company reported net income in the amount of $279,915 for 2024. What is the basic earnings per share (rounded)? Multiple Choice $4.67 $3.11 $292 $3.39
Anderson Steel Company began 2021 with 500,000 shares of common stock outstanding. On March 31, 2021, 160,000 new shares were sold at a price of $70 per share. The market price has risen steadily since that time to a high of $75 per share at December 31. No other changes in shares occurred during 2021, and no securities are outstanding that can become common stock. However, there are two agreements with officers of the company for future issuance of common stock. Both agreements relate to compensation arrangements reached in 2020. The first agreement grants to the company president a right to 32,000 shares of stock each year the closing market price is at least $73. The agreement begins in 2022 and expires in 2025. The second agreement grants to the controller a right to 37,000 shares of stock if she is still with the firm at the end of 2029. Net income for 2021 was $4,200,000. Required: Compute Anderson Steel Company's basic and diluted earnings per share for the year ended December…
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On September 6, 2020, the board of directors of Peterson Manufacturing voted to distribute $4,600,000 to the firm's stockholders.If the firm has issued 75,000 shares of 4% preferred stock with a par value of $10 and 1,870,000 shares of common stock outstanding, calculate the following. (Round all answers to the nearest cent.) 1. Dividend per share of preferred stock: $ 2. Dividend per share of common stock:
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Company B had net income for the fiscal year ended December 31, 2020 of $5 million. There were 500,000 common shares outstanding throughout 2020. The average market price of the common shares for the entire fiscal year was $50. Company tax rate was 25% for 2020. Company B had the following potential common shares outstanding during 2020: • Options to buy 100,000 common shares at $45 per share. • 100,000 convertible preferred shares entitled to a cumulative dividend of $10 per share. Each preferred share is convertible into 1.5 common shares. • 4% convertible bonds with a principal amount of $30 million, issued at par. Each $1,000 bond is convertible into 25 common shares. For the fiscal year ended December 31, 2020, what is the basic and diluted EPS using IFRS?
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At January 1, 2021, the company had issued 40,000 executive stock options permitting executives to buy 40,000 shares of stock for $25. The vesting schedule is 20% the first year, 30% the second year, and 50% the third year (graded-vesting). The fair value of the options is estimated as follows: Vesting Date Amount Vesting Fair Value per Option Dec. 31, 2021 20 % 2$ Dec. 31, 2022 30 % 2$ 8 Dec. 31, 2023 50 % $ 12 What is the compensation expense related to the options to be recorded in 2021? O $48,000. $96,000. O $128,000. O $184,000.
During 2020, Goodfellow has the following transactions involving its common and preferred stock: a. Issued 15,000 shares of $5 par common stock for $15 a share. This brings total shares outstanding to 50,000 shares and 100,000 shares are authorized. b. Issued 5,000 shares of $100 par, 6%, cumulative preferred stock for $121 per share. c. When the market value of the common stock reached $15 a share, Goodfellow declared a 3-for-1 stock split, reducing the par value to $1.67 per share. Required: Prepare a journal entry for each transaction, if required. For grading purposes record the entries on December 31. Prepare a journal entry for each transaction, if required. For grading purposes record the entries on December 31. General Journal Instructions PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 2 3 4 5…

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