Marion Company has 30,000 shares of common stock outstanding during all of 2019. This common stock has
Question:
Marion Company has 30,000 shares of common stock outstanding during all of 2019. This common stock has been selling at an average market price of $45 per share. Marion also has outstanding for the entire year compensatory share options to purchase 4,000 shares of common stock at $32 per share. The unrecognized compensation cost (net of tax) relating to these share options is $3 per share. During 2019, Marion earned income of $36,000 after income taxes of 30%.
Required:
1. Compute Marion’s 2019 diluted earnings per share.
2. Next Level Assume Marion uses IFRS. Discuss what Marion would do differently for computing earnings per share, and then compute its earnings per share.
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Step by Step Answer:
1 2 Under IFRS Marion Company would not include the unrecognized ...View the full answer
Intermediate Accounting Reporting and Analysis
ISBN: 978-1337788281
3rd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
