question archive Discuss the treatment, if any, that should be given to each of the following items in computing EPS for financial statement reporting: -The declaration of current dividends on cumulative preferred stock -The acquisition of some of the corporation's outstanding common stock during the current fiscal year (the stock was classified as treasury stock) -A two-for-one stock split of common stock during the current fiscal year -A provision created out of retained earnings for a contingent liability from a possible lawsuit -Outstanding preferred stock issued at a premium with a par value liquidation right -The exercise at a price below market value but above book value of a common stock option issued during the current year to officers of the corporation -The replacement of a machine immediately before the close of the current year at a cost 20% above the original cost of the replaced machine (the new machine will perform the same function as the old machine, which was sold for its book value)
Subject:BusinessPrice: Bought3
following items in computing EPS for financial statement reporting:
-The declaration of current dividends on cumulative preferred stock
-The acquisition of some of the corporation's outstanding common stock during the current fiscal year (the stock was classified as treasury stock)
-A two-for-one stock split of common stock during the current fiscal year
-A provision created out of retained earnings for a contingent liability from a possible lawsuit
-Outstanding preferred stock issued at a premium with a par value liquidation right
-The exercise at a price below market value but above book value of a common stock option issued during the current year to officers of the corporation
-The replacement of a machine immediately before the close of the current year at a cost 20% above the original cost of the replaced machine (the new machine will perform the same function as the old machine, which was sold for its book value)