Isadore Bell Company granted 8 million of its no par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $3 per share on January 1, 2021, the grant date. When calculating diluted EPS at December 31, 2022, what will be the net increase in the denominator of the EPS fraction if the market price of the common shares averaged $4 per share during 2022?

Isadore Bell Company granted 8 million of its no par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $3 per share on January 1, 2021, the grant date. When calculating diluted EPS at December 31, 2022, what will be the net increase in the denominator of the EPS fraction if the market price of the common shares averaged $4 per share during 2022?

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

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 7RE: On January 1, 2019, Phoenix Corporation adopts a performance-based share option plan for 25...

See similar textbooks

Similar questions

Barron Company granted 8 million of its no par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $3 per share on January 1, 2021, the grant date. When calculating diluted EPS at December 31, 2022, what will be the net increase in the denominator of the EPS fraction if the market price of the common shares averaged $4 per share during 2022? A. 6 million B. 2.67 million C. 2 million D. 8 million
Niles Company granted 36 million of its no par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $12 per share on January 1, 2020, the grant date of the restricted stock award. When calculating diluted EPS at December 31, 2021, what will be the net increase in the weighted-average number of shares outstanding if the market price of the common shares averaged $12 per share during 2021?
Niles Company granted 9 million of its no par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $5 per share on January 1, 2015, the grant date of the restricted stock award. When calculating diluted EPS at December 31, 2016, what will be the net increase in the denominator of the EPS fraction if the market price of the common shares averaged $5 per share during 2016?
Niles Company granted 42 million of its no par common shares to executives, subject to forfeiture if employment is terminated within three years. the common shares have a market price of 14 per share on january 1, 2017, the grant date of the restricted stock award. when calculating dilluted EPS at december 31,2018, what will be the net increase in the denominator of teh EPS fraction if the market price of teh common shares averaged 14 per share during 2018?
GMA Co. had 900,000 ordinary shares issued and outstanding at December 31, 2019. On July 1, 2020 an additional 750,000 shares were issued for cash. GMA Co. also had share options outstanding at the beginning and end of 2020 which allow the holders to purchase 225,000 ordinary shares at P20 per share. The average market price of GMA Co.'s ordinary shares was P25 during 2020. What is the number of shares that should be used in computing diluted earnings per share for the year ended December 31, 2020?A. 1,695,000B. 1,455,000C. 1,331,250D. 1,320,000
Niles Company granted 9 million of its no par common shares to executives, subject to forfeiture if employmentis terminated within three years. The common shares have a market price of $5 per share on January 1, 2017, thegrant date of the restricted stock award. When calculating diluted EPS at December 31, 2018, what will be thenet increase in the denominator of the EPS fraction if the market price of the common shares averaged $5 pershare during 2018?
GMA Co. had 900,000 ordinary shares issued and outstanding at December 31, 2019. On July 1, 2020 an additional 750,000 shares were issued for cash. GMA Co. also had share options outstanding at the beginning and end of 2020 which allow the holders to purchase 225,000 ordinary shares at P20 per share. The average market price of GMA Co.'s ordinary shares was P25 during 2020. What is the number of shares that should be used in computing diluted earnings per share for the year ended December 31, 2020? A. 1,695,000 B. 1,455,000 C. 1,331,250 D. 1,320,000 E. answer not given
In 2021, a company issued 1,000,000 no-par value ordinary shares for P1.15 per share. The stated value of the shares is P1. Also, during the year, some potential shareholders of the company subscribed for 800,000 of the same ordinary shares for P1.20 per share and made a 40% downpayment. What is the amount of the company's legal capital in 2021?
In 2021, wow company issued 1,000,000 no-par value ordinary shares for P1.15 per share. The stated value of the shares is P1. Also, during the year, some potential shareholders of the company subscribed for 800,000 of the same ordinary shares for P1.20 per share and made a 40% down-payment. What is the amount of the company’s legal capital in 2021?
Investco is a trading firm and has Dec 31 as its annual closing date. On Oct 17th of 2019, it had purchased 1000 shares at $12 each. The share value on Dec. 31, 2019 was $10. Due to Covid and lockdown, the share value on Dec 31, 2020 was further down to $8. Markets recovered a little in 2021 and the price as of Dec 31,2021 was $11. Markets further recovered and on June 20, 2022 shey sold all shares for $13. Please provide the necessary journal entries to record the purchase, changes in investment and sale of their investment, assuming this investment was categorized as FVTPL.
PHN Foods granted 18 million of its no-par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $5 per share on January 1, 2020, the grant date.Required:1. What journal entry will PHN Foods prepare to record executive compensation regarding these restricted shares at December 31, 2020 and December 31, 2021?2. When calculating diluted EPS at December 31, 2021, what will be the net increase in the weighted average number of common shares with regard to the restricted stock shares if the market price of the common shares averages $5 per share during 2021?
Delta NV has share capital of $l m in shares of $0.25 each. At 31 May 2019 shares had a market value of $1.1 each. On 1 June 2009 the company makes a rights issue of 1 share for every 4 held at $0.6 per share. Its profits were $500,000 in 2019 and $440,000 in 2018. The year-end is 30 November. Required: Calculate (a) the theoretical ex-rights price; (b) the bonus issue factor; (c) the basic earnings per share for 2018; (d) the basic earnings per share for 2019.