Brooks Inc. recently purchased Donovan Corp., a large midwestern home painting corporation. One of the terms of the merger was that if Donovan’s income for 2013 was $110,000 or more, 10,000 additional shares would be issued to Donovan’s stockholders in 2014. Donovan’s income for 2012 was $125,000.

Instructions
  (a) Would the contingent shares have to be considered in Brooks’s 2012 earnings per share computations?
  (b) Assume the same facts, except that the 10,000 shares are contingent on Donovan’s achieving a net income of $130,000 in 2013. Would the contingent shares have to be considered in Brooks’s earnings per share computations for 2012?