On 1 January 2021, the Beginning of the Reporting Period

question 7

Multiple Choice

On 1 January 2021, the beginning of the reporting period, Jupiter Ltd has 50 000 ordinary shares on issue. On 30 June 2021, Jupiter Ltd issued a further 20 000 ordinary shares for cash. On 1 November 2021, Jupiter Ltd repurchased 2 400 shares at fair value in a market transaction. The weighted average number of shares for use in the earnings per share calculation is:

• A) 60 000 shares.
• B) 70 000 shares.
• C) 60 400 shares.
• D) 72 400 shares.

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Definitions:

Discharged

The state of being released from a legal, financial, or other obligation.

Substantially Performed

A legal concept indicating that a contract has been fulfilled enough to meet its essential requirements, despite minor variances from the exact terms.

Concurrent Conditions

In a contract, terms under which each party’s performance is conditioned on the performance of the other; occur only when the parties are required to perform for each other simultaneously.

Extrinsic Rewards

Rewards provided by an external source, such as money, grades, or praise, which can motivate behavior that might not occur otherwise.