1. If the calculation below for Basic EPS is correct, what are the specific ASC codifications (ASC xxx-xx-xx-x) that allow/justify us to create that calculation?

The Controller of Valiant Motorcycles has given you the responsibility of calculating the earnings per share figures for the year ended 12/31/X7. The following information is provided. Common stock transactions As of 1/1/X7, the company had 6,000,000 authorized shares of $1 stated value common stock, and 710,000 shares issued and outstanding. - 10/1/X7, issued in a 2 for 1 stock split. After the stock split, the stated value was reduced to $0.50 per share and there were 12,000,000 authorized shares. - 12/1/X7, issued 180,000 shares at $52 per share (post-split price) Treasury stock transactions (accounted for using the par value method) - 3/31/X7 purchased 20,000 shares at $105 per share - 7/1/X7 sold 8,000 shares at $102 per share. Stock Warrants On 1/1/X7,30,000 warrants were issued at $10 each. Initially, each warrant allowed the bearer to exchange the warrant and $36 for one share of common stock. Effective 10/1/X7, each warrant became exchangeable for two common shares at a price of $18 per share. No warrants were exercised during 207. Convertible Bonds $2,000,000 of unsecured, convertible, 15 -year, 4% bonds were issued on 1/1/X5. The initial conversion rate was 20 shares of common stock for each $1,000 bond. Effective 10/1/X7, the conversion rate became 40 shares per $1,000 bond. As of 12/31/X7, all bonds were still outstanding and unconverted, and all semi-annual interest payments had been paid. No bonds were converted during 207. Net Income During 207, the company reported $3,100,000 of net income. Tax Rate The company's applicable tax rate is 32% Common stock prices Beginning, quarterly, ending, and average prices for the company's common stock are provided below. *Annual average adjusted for the stock split on 10/1/X7. 1. Basic Earnings Per Share (EPS): To calculate the basic EPS, we need to determine the weighted average number of common shares outstanding during the year. a) Authorized Shares: As of January 1,X7 : Authorized shares =6,000,000 b) Stock Split on October 1, X7: Before the stock split: Authorized shares =6,000,000 Issued and outstanding shares =710,000 After the stock split: Authorized shares =12,000,000 Issued and outstanding shares =710,0002=1,420,000 c) Shares Issued on December 1,X7 : Issued and outstanding shares =1,420,000+180,000=1,600,000 d) Weighted Average Number of Common Shares Outstanding: To calculate the weighted average number of common shares outstanding, we need to consider the period when each share count was in effect. Shares outstanding on January 1,X7=710,000 Shares outstanding from January 1 to October 1,X7=710,000 Shares outstanding from October 1 to December 1,X7=1,420,000 Shares outstanding from December 1 to December 31,X7=1,600,000 Weighted average shares outstanding =[(710,000 * 3)+(1,420,000 * 2)+1,600,000]/6= 1,060,000 e) Net Income: During 207, the company reported net income of $3,100,000. f) Basic Earnings Per Share (EPS): Basic EPS = Net Income / Weighted Average Number of Common Shares Outstanding Basic EPS =$3,100,000/1,060,000 Basic EPS =$2.92 If these are the calculations for weighted average number of shares for basic EPS, what are the SPECIFIC ASC case numbers, ex. ASC XXX-XX-XX-X. that justify these calculations? *** asc.fasb.org musted be used. ASC changes all the time and google searches can result in old case numbers that are no longer valid.*** The Controller of Valiant Motorcycles has given you the responsibility of calculating the earnings per share figures for the year ended 12/31/X7. The following information is provided. Common stock transactions As of 1/1/X7, the company had 6,000,000 authorized shares of $1 stated value common stock, and 710,000 shares issued and outstanding. - 10/1/X7, issued in a 2 for 1 stock split. After the stock split, the stated value was reduced to $0.50 per share and there were 12,000,000 authorized shares. - 12/1/X7, issued 180,000 shares at $52 per share (post-split price) Treasury stock transactions (accounted for using the par value method) - 3/31/X7 purchased 20,000 shares at $105 per share - 7/1/X7 sold 8,000 shares at $102 per share. Stock Warrants On 1/1/X7,30,000 warrants were issued at $10 each. Initially, each warrant allowed the bearer to exchange the warrant and $36 for one share of common stock. Effective 10/1/X7, each warrant became exchangeable for two common shares at a price of $18 per share. No warrants were exercised during 207. Convertible Bonds $2,000,000 of unsecured, convertible, 15 -year, 4% bonds were issued on 1/1/X5. The initial conversion rate was 20 shares of common stock for each $1,000 bond. Effective 10/1/X7, the conversion rate became 40 shares per $1,000 bond. As of 12/31/X7, all bonds were still outstanding and unconverted, and all semi-annual interest payments had been paid. No bonds were converted during 207. Net Income During 207, the company reported $3,100,000 of net income. Tax Rate The company's applicable tax rate is 32% Common stock prices Beginning, quarterly, ending, and average prices for the company's common stock are provided below. *Annual average adjusted for the stock split on 10/1/X7. 1. Basic Earnings Per Share (EPS): To calculate the basic EPS, we need to determine the weighted average number of common shares outstanding during the year. a) Authorized Shares: As of January 1,X7 : Authorized shares =6,000,000 b) Stock Split on October 1, X7: Before the stock split: Authorized shares =6,000,000 Issued and outstanding shares =710,000 After the stock split: Authorized shares =12,000,000 Issued and outstanding shares =710,0002=1,420,000 c) Shares Issued on December 1,X7 : Issued and outstanding shares =1,420,000+180,000=1,600,000 d) Weighted Average Number of Common Shares Outstanding: To calculate the weighted average number of common shares outstanding, we need to consider the period when each share count was in effect. Shares outstanding on January 1,X7=710,000 Shares outstanding from January 1 to October 1,X7=710,000 Shares outstanding from October 1 to December 1,X7=1,420,000 Shares outstanding from December 1 to December 31,X7=1,600,000 Weighted average shares outstanding =[(710,000 * 3)+(1,420,000 * 2)+1,600,000]/6= 1,060,000 e) Net Income: During 207, the company reported net income of $3,100,000. f) Basic Earnings Per Share (EPS): Basic EPS = Net Income / Weighted Average Number of Common Shares Outstanding Basic EPS =$3,100,000/1,060,000 Basic EPS =$2.92 If these are the calculations for weighted average number of shares for basic EPS, what are the SPECIFIC ASC case numbers, ex. ASC XXX-XX-XX-X. that justify these calculations? *** asc.fasb.org musted be used. ASC changes all the time and google searches can result in old case numbers that are no longer valid.***