Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Alternate Exercises and Problems 19–1
Chapter 19 Share-Based Compensation
and Earnings per Share
Exercise 19-1
Requirement 1
Requirement 2
no entry
Requirement 3
Requirement 4
$25.50 fair value per share
.
Exercise 19-2
Requirement 1
At January 1, 2016, the estimated value of the award is:
Requirement 2
Requirement 3
The company should adjust the cumulative amount of compensation expense
recorded to date in the year the estimate changes.
2017
Exercise 19-3
1. EPS in 2016
(amounts in millions, except per share amount)
net Earnings
income Per Share
2. EPS in 2017
(amounts in thousands, except per share amount)
net Earnings
3. 2016 EPS in the 2017 comparative financial statements
(amounts in thousands, except per share amount)
net Earnings
Chapter 18
19–4 Intermediate Accounting, 8/e
PROBLEMS
Problem 19-1
1. Net loss per share for the year ended December 31, 2016:
(amounts in millions, except per share amount)
net preferred Net Loss
loss dividends Per Share
2. Per share amount of income or loss from continuing operations for the year
ended December 31, 2016:
(amounts in millions, except per share amount)
Income from
Continuing
operating preferred Operations
income dividends Per Share
Alternate Exercises and Problems 19–5
Problem 19-1 (concluded)
3. 2016 and 2015 comparative income statements:
(amounts in millions, except per share amount)
2016 2015
Earnings (Loss) Per Common Share:
Income (loss) from continuing operations $ .19 $.71
19–6 Intermediate Accounting, 8/e
Problem 19-2
(amounts in millions, except per share amount)
net preferred
income dividends
Alternate Exercises and Problems 19–7
Problem 19-3
The options issued in 2015 are not considered when calculating 2016 EPS
because the exercise price ($34) is not less than the 2016 average market price of $32
(although they would have been considered when calculating 2014 or 2015 EPS if the
average price those years had been more than $34).
Problem 19-3 (concluded)
(amounts in millions, except per share amounts)
Basic EPS
net preferred
income dividends
$1,050 – $39 $1,011
Diluted EPS
net preferred after-tax
income dividends interest savings
$1,050 – $39 + $40 – 40%($40) $1,035
Alternate Exercises and Problems 19–9
Problem 19-4
(amounts in millions, except per share amounts)
Basic EPS
net preferred
income dividends
$1,300 – $80* $1,220
