Reference no: EM132494344
The partial trial balance for ABC Co. as at December 31, 20x2 is as follows:
20x2 20x1
Common shares $17,045,917 $15,500,000
Contributed Surplus - Stock Options 120,000 300,000
Retained earnings 4,736,776 4,650,000
Point 1: There are 52,000 stock options which vested on December 31, 20x1 at an exercise price of $31 per share. The exercise period for this plan started on Jan 1, 20x2 and ends on December 31, 20x3.
Point 2: There were 650,000 shares outstanding at the beginning of the year. No dividends were declared during the year. The net income for the year was $850,000.
The following transactions took place in 20x2:
Mar 1: Issued 100,000 common shares for $400,000
May 31: Holders of stock options exercised their stock options
Sep 30: Repurchased and cancelled 30,000 shares
Problem 1: How to calculate the book value per share immediately before the Sep 30 transaction?