During 2016,Quattro Entered into the Following Transactions Relating to Shareholders

question 137

Essay

During 2016,Quattro entered into the following transactions relating to shareholders' equity.The corporation was authorized to issue 20 million common shares,$1 par per share.
Net income for 2016 was $110 million.
Jan.2: Issued 10 million common shares for cash.
Jan.3 Entered an agreement with the company president to issue up to 2 million additional shares of common stock in 2016 based on the earnings of Quattro in 2016.If net income exceeds $100 million,the president will receive 1 million shares;2 million shares if net income exceeds $120 million.
Required:
Compute basic and diluted EPS for 2016.

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