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

Essay

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.