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Corporation R, on December 31, 2007, contractually commits itself to issue 2,000 additional common shares on December 31, 2009. For each of the following cases, determine if these potential shares should be included in diluted EPS for 2007:
Case I:
No condition needs be fulfilled to trigger the issuance in
2009.
Case II:
There is a condition that the 2009 net income be at least
$300,000. Presently, in 2007, Corporation R has earned
$270,000.
Case III:
Same as Case II, except that in 2007, Corporation R earned
$350,000.
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information for the year ended december 31 2010sales 110000direct materials used 20800indirect production costs-fixed
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