Brush Inc. recently purchased Paint Pro, a home-painting corporation. One of the terms of the merger was that, if Paint Pro's net income for 2021 was $110,000 or more, 10,000 additional shares would be issued to Paint Pro's shareholders in 2022. Paint Pro's net income for 2020 was $120,000. 

Instructions 

a. Would the contingent shares have to be considered in Brush's 2020 earnings per share calculations? 

b. Assume the same facts, except that the 10,000 shares are contingent on Paint Pro achieving a net income of $130,000 or more in 2021. Would the contingent shares have to be considered in Brush's earnings per share calculations for 2020? 

c. Provide support for the accounting treatment of the contingent shares discussed in part (a), referring to the conceptual framework.