Anderson Steel Company began 2021 with 570,000 shares of common stock outstanding. On March 31, 2021,...

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Anderson Steel Company began 2021 with 570,000 shares of common stock outstanding. On March 31, 2021, 180,000 new shares were sold at a price of $60 per share. The market price has risen steadily since that time to a high of $65 per share at December 31. No other changes in shares occurred during 2021, and no securities are outstanding that can become common stock. However, there are two agreements with officers of the company for future issuance of common stock. Both agreements relate to compensation arrangements reached in 2020. The first agreement grants to the company president a right to 46,000 shares of stock each year the closing market price is at least $63. The agreement begins in 2022 and expires in 2025. The second agreement grants to the controller a right to 51,000 shares of stock if she is still with the firm at the end of 2029. Net income for 2021 was $5,600,000. Required: Compute Anderson Steel Company's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Do not round intermediate calculations.) Numerator T Denominator = Earnings per Share Basic I Diluted Anderson Steel Company began 2021 with 570,000 shares of common stock outstanding. On March 31, 2021, 180,000 new shares were sold at a price of $60 per share. The market price has risen steadily since that time to a high of $65 per share at December 31. No other changes in shares occurred during 2021, and no securities are outstanding that can become common stock. However, there are two agreements with officers of the company for future issuance of common stock. Both agreements relate to compensation arrangements reached in 2020. The first agreement grants to the company president a right to 46,000 shares of stock each year the closing market price is at least $63. The agreement begins in 2022 and expires in 2025. The second agreement grants to the controller a right to 51,000 shares of stock if she is still with the firm at the end of 2029. Net income for 2021 was $5,600,000. Required: Compute Anderson Steel Company's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Do not round intermediate calculations.) Numerator T Denominator = Earnings per Share Basic I Diluted

Answer rating: 100% (QA)

Step 1 Basic earnings per share Basic earnings per share is calculated considering the outstanding shares being available throughout the year For this ... View the full answer