One component of the pension liability under both U.S. GAAP and IFRS is prior service cost (or past service cost under IFRS). AB
1 answer:
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Answer:
a) c. $4.34
b) b. $4.10
Explanation:
a) Find Farewell's diluted earnings per share for 2021.
Use the formula below:
Diluted EPS = (Net income after tax - preferred dividend) / diluted common stock
Diluted EPS = $4.34 per share
b) stock options = 5,000
Value in current shares = 500,000/12 = $4,167
Diluted shares = 5000 - 4167 = 833
Use the formula below to find the diluted earnings per share:
Diluted EPS = Net income/share outstanding
Diluted EPS = $4.10 per share