On January 1, 2020, to motivate top management, Resume Inc. granted 1,000 options to purchase common stock
Question:
On January 1, 2020, to motivate top management, Resume Inc. granted 1,000 options to purchase common stock at \$10 per share to key officers if net income increased by \(5 \%\) in 2020 over the prior year. The fair value of the options on January 1,2020 , is estimated to be \(\$ 5,000\). Resume Inc. reported net income of \(\$ 50,000\) in 2020 , which represented a \(7 \%\) increase over the prior year. How will the options affect the calculation of the company's 2020 diluted earnings per share?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Intermediate Accounting Volume 2
ISBN: 9781618533135
2nd Edition
Authors: Hanlon, Hodder, Nelson, Roulstone, Dragoo
Question Posted: