During 2009, Quattro entered into the following transactions relating to shareholders' equity. The corporation was authorized to issue 20 million common shares, $1 par per share.
Required:
Compute basic and diluted EPS for 2009.
Net income for 2009 was $ \$ 110 $ million.
Jan. 2:$\quad$ Issued 10 million common shares for cash.
Jan. 3: $\quad$Entered an agreement with the company president to issue up to 2 million additional
$\quad$$\quad$$\quad$shares of common stock in 2009 based on the earnings of Quattro in 2009. If net
$\quad$$\quad$$\quad$ income exceeds $ \$ 100 $ million, the president will receive 1 million shares; 2 million
$\quad$$\quad$$\quad$shares if net income exceeds $ \$ 120 $ million.

Question

During 2009, Quattro entered into the following transactions relating to shareholders' equity. The corporation was authorized to issue 20 million common shares, $1 par per share.
Required:
Compute basic and diluted EPS for 2009.
 Net income for 2009 was $ \$ 110 $ million.
Jan. 2:$\quad$ Issued 10 million common shares for cash.
Jan. 3: $\quad$Entered an agreement with the company president to issue up to 2 million additional 
$\quad$$\quad$$\quad$shares of common stock in 2009 based on the earnings of Quattro in 2009. If net
$\quad$$\quad$$\quad$ income exceeds $ \$ 100 $ million, the president will receive 1 million shares; 2 million 
$\quad$$\quad$$\quad$shares if net income exceeds $ \$ 120 $ million.

Quizplus · Accepted Answer

The Answer of During 2009, Quattro entered into the following transactions relating to shareholders' equity. The corporation was authorized to issue 20 million common shares, $1 par per share.
Required:
Compute basic and diluted EPS for 2009.
 Net income for 2009 was $ \$ 110 $ million.
Jan. 2:$\quad$ Issued 10 million common shares for cash.
Jan. 3: $\quad$Entered an agreement with the company president to issue up to 2 million additional 
$\quad$$\quad$$\quad$shares of common stock in 2009 based on the earnings of Quattro in 2009. If net
$\quad$$\quad$$\quad$ income exceeds $ \$ 100 $ million, the president will receive 1 million shares; 2 million 
$\quad$$\quad$$\quad$shares if net income exceeds $ \$ 120 $ million.

During 2009, Quattro Entered into the Following Transactions Relating to Shareholders