During its first year of operations, McCollum Tool Works entered into the following transactions relating to shareholders' equity. The corporation was authorized to issue 100 million common shares, $1 par per share.
Jan.2 Issued 35 million common shares for cash.
3 Entered an agreement with the company president to issue up to 2 million additional shares of common stock in 2012 based on the earnings of McCollum in 2012. If net income exceeds $140 million, the president will receive 1 million shares; 2 million shares if net income exceeds $150 million.
Mar.31 Issued 4 million shares in exchange for plant facilities.

Net income for 2011 was $148 million.

Compute basic and diluted earnings per share for the year ended December 31, 2011.

  • CreatedJuly 11, 2013
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