1- Employee Share Option Plan:

Employee buys shares (no par) with 13% discount, under the plan for $1,740 rather than

the current price of $2,000. How to record this transaction in journal entry?

2- Basic Earnings Per Shares:

Getaway Travel Company reported net income for 2014 in the amount of $50,000.

During 2014, Getaway declared and paid $2,000 in cash dividends on its nonconvertible

preference shares. Getaway also paid $10,000 cash dividends on its ordinary shares.

Getaway had 40,000 ordinary shares outstanding from January 1 until 10,000 new shares

were sold for cash on July 1, 2014. A 2-for-1 share split was granted on July 5 2014 (or

100%), What is the 2014 basic earnings per share?