Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

?On December 3 1 , 2 0 2 3 , ?Berclair Incorporated had 5 0 0 ?million shares of common stock and 2 3 ?million

?On December 31,2023, ?Berclair Incorporated had 500 ?million shares of common stock and 23 ?million shares of 9%, ?$100 ?par value cumulative preferred stock issued and outstanding.
On March 1,2024, ?Berclair purchased 60 ?million shares of its common stock as treasury stock.
Berclair issued a 6% ?common stock dividend on July 1,2024.
Four million treasury shares were sold on October 1.
Net income for the year ended December 31,2024, ?was $1,150 ?million.
Also outstanding at December 31 ?were 90 ?million incentive stock options granted to key executives on September 13,2019.
The options were exercisable as of September 13,2023, ?for 90 ?million common shares at an exercise price of $78 ?per share.
During 2024, ?the market price of the common shares averaged $90 ?per share.
The options were exercised on September 1,2024.
Required:
Compute Berclairs basic and diluted earnings per share for the year ended December 31,2024.(Shares for stock options and conversion of convertible securities have been adjusted for any stock split or stock dividend.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ramji Balakrishnan, Konduru Sivaramakrishnan, Geoff B. Sprinkle

2nd edition

1118385381, 978-1118385388

More Books

Students also viewed these Accounting questions

Question

What language or languages are spoken in your home?

Answered: 1 week ago