Abco Inc has 500 common shares authorized, 350 issued and 100 treasury shares for all of 2020 and 2021. There are no preferred shares or potentially dilutive securities. Abco sold 75 treasury shares on Jan 01, 2022. On October 01, 2023. Abco executed a 2 for 1 stock split. There were no other stock transactions. NOTE: Show supporting calculations or explanations below each table. 1. Based on information above and Nl information below, find Basic EPS as reported in financial statements issued for 2022. 2022 2021 2020 Net income $1,500 $800 $900 Wtd Avg Common Shares Outstanding Basic EPS 2. Based on information above and Nl information below, find Basic EPS as reported in financial statements issued for 2023. 2023 2022 2021 Net income $1,800 $1,500 $800 Wtd Avg Common Shares Outstanding Basic EPS 3. Now assume that the company did have preferred stock outstanding for all years presented. The 5% preferred was issued on 1/1/2021, it is cumulative and non- participating with a $10,000 total par value. Dividends of $1,000 total were declared and paid in 2021; no dividends were declared for 2022 or 2023. Find and show below the Basic EPS as reported in the financial statements issued for 2023. 2023 2022 2021 Numerator for BEPS Wid Avg Common Shares Outstanding Basic EPS Q2. On January 01, 2021. Alex Company aranted restricted stock to five executives. Each executive received 1.500 shares of Alex common stock. The restricted shares vest on January 01, 2023; thus, the restricted shares are compensation for services rendered during 2021 and 2022. The restricted shares had a grant date value of $75,000 = $10 fair value per common Share x 1,500 shares per executive x 5 executives). On February 18, 2022, one executive forfeited her restricted shares because she left Alex to join another company's executive team. Make journal entries to record (1) restricted stock arant. (2) the expense accrual at 12/31/2021, and (3) the forfeiture on 2/18/2022, and (4) the expense accrual on 12/31/2022. Show supporting calcuations for (3) and (4) in space provided at the bottom of the page. Dr Cr Accounts (1) Date 1/1/2021 (2) 12/31/2021 (3) 2/18/2022 (4) 12/31/2022 Supporting calculations: (3) 19 03. Gimble Inc. granted 100 stock options to its key employees on 1/1/2020. The options vest after a 3 vear service period and had a total grant-date fair value of $900. Each option has an exercise price of $20. During the second year of the service period, several employees left the company and thereby forfeited options with an original total grant-date fair value of $144. In the fourth year after the options vested Mary Lock exercised options with a grant-date fair value of $135 for common shares with a current FMV of $25 per share. a. Determine the total option-related compensation expense that was reported by Gimble in year 1 of the service period and (1) year 2 of the service period. Show calculations. Answer Year 1 Year 2 b. Make the journal entry for the exercise of the options in the fourth year. Show supporting calculations. c. What was the aggregate intrinsic value of the options exercised by Mary Lock? (1) What was the aggregate three-year compensation expense attributable to those options? Show supporting calculations. (10) d. Assume that options with a grant-date fair value of $300 were never exercised and, as a result, expire worthless after five years. Discuss the accounting for this situation. Abco Inc has 500 common shares authorized, 350 issued and 100 treasury shares for all of 2020 and 2021. There are no preferred shares or potentially dilutive securities. Abco sold 75 treasury shares on Jan 01, 2022. On October 01, 2023. Abco executed a 2 for 1 stock split. There were no other stock transactions. NOTE: Show supporting calculations or explanations below each table. 1. Based on information above and Nl information below, find Basic EPS as reported in financial statements issued for 2022. 2022 2021 2020 Net income $1,500 $800 $900 Wtd Avg Common Shares Outstanding Basic EPS 2. Based on information above and Nl information below, find Basic EPS as reported in financial statements issued for 2023. 2023 2022 2021 Net income $1,800 $1,500 $800 Wtd Avg Common Shares Outstanding Basic EPS 3. Now assume that the company did have preferred stock outstanding for all years presented. The 5% preferred was issued on 1/1/2021, it is cumulative and non- participating with a $10,000 total par value. Dividends of $1,000 total were declared and paid in 2021; no dividends were declared for 2022 or 2023. Find and show below the Basic EPS as reported in the financial statements issued for 2023. 2023 2022 2021 Numerator for BEPS Wid Avg Common Shares Outstanding Basic EPS Q2. On January 01, 2021. Alex Company aranted restricted stock to five executives. Each executive received 1.500 shares of Alex common stock. The restricted shares vest on January 01, 2023; thus, the restricted shares are compensation for services rendered during 2021 and 2022. The restricted shares had a grant date value of $75,000 = $10 fair value per common Share x 1,500 shares per executive x 5 executives). On February 18, 2022, one executive forfeited her restricted shares because she left Alex to join another company's executive team. Make journal entries to record (1) restricted stock arant. (2) the expense accrual at 12/31/2021, and (3) the forfeiture on 2/18/2022, and (4) the expense accrual on 12/31/2022. Show supporting calcuations for (3) and (4) in space provided at the bottom of the page. Dr Cr Accounts (1) Date 1/1/2021 (2) 12/31/2021 (3) 2/18/2022 (4) 12/31/2022 Supporting calculations: (3) 19 03. Gimble Inc. granted 100 stock options to its key employees on 1/1/2020. The options vest after a 3 vear service period and had a total grant-date fair value of $900. Each option has an exercise price of $20. During the second year of the service period, several employees left the company and thereby forfeited options with an original total grant-date fair value of $144. In the fourth year after the options vested Mary Lock exercised options with a grant-date fair value of $135 for common shares with a current FMV of $25 per share. a. Determine the total option-related compensation expense that was reported by Gimble in year 1 of the service period and (1) year 2 of the service period. Show calculations. Answer Year 1 Year 2 b. Make the journal entry for the exercise of the options in the fourth year. Show supporting calculations. c. What was the aggregate intrinsic value of the options exercised by Mary Lock? (1) What was the aggregate three-year compensation expense attributable to those options? Show supporting calculations. (10) d. Assume that options with a grant-date fair value of $300 were never exercised and, as a result, expire worthless after five years. Discuss the accounting for this situation