As part of its executive compensation plan, Vertovec Inc.
granted 90,000 of its no-par common shares to executives, subject
to forfeiture if employment is terminated within three years.
Vertovec’s common shares have a market price of $9 per share on
January 1, 2020, the grant date of the restricted stock award, as
well as on December 31, 2021. 480,000 shares were outstanding at
January 1, 2021. Net income for 2021 was $240,000.
Required:
Compute Vertovec’s basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands.)
Earnings per share
= $240000/480000 = $0.50 per share
Diluted eps
= $240000 / (480000+90000)
= $0.42 per share
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