In this simulation, you are asked to address questions related to the accounting for share options and earnings per share computations. Prepare responses to all parts.

Explanation
On the basis of the information above do you agree with the controller€™s computation of earnings per share for the year? If you disagree, prepare a revised computation of earnings per share.
Financial Statements
Assume the same facts as those presented above, except that options had been issued to purchase 140,000 ordinary shares at $10 per share. These options were outstanding at the beginning of the year and none had been exercised or canceled during the year. The average market price of the ordinary shares during the year was $25, and the ending market price was $35.
What earnings per share amounts will bereported?

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Kww sional Simulation Share Options and EPS Time Remaining 3 hours 50 minutes 團團團目しロ酉囹 As auditor for Banquo & Associates, you have been assigned to check Duncan Corporation's computation of earnings per share for the current year. The controller, Mac Beth, has supplied you with the following computations $3,374,960 Net income Ordinary shares issued and outstanding Beginning of year End of year Average 1,285,000 1,200,000 1,242,500 Earnings per share $3,374,960 1,242,500 $2.72 per share You have developed the following additional information. 1. There are no other equity securities in addition to the ordinary shares. 2. There are no options or warrants outstanding to purchase ordinary shares 3 There are no convertible debt securities 4. Activity in ordinary shares during the year was as follows Outstanding, Jan. 1 Treasury shares acquired, Oct. 1 1,285,000 (250,000) 1,035,000 165,000 1,200,000 Shares reissued, Dec. 1 Outstanding, Dec. 31