Treasury method example question

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  • March 18, 2013 at 9:13 pm #176764
    Anonymous
    Inactive

    Treasury Stock Method example:

    Assume stock options were exercised: 40,000 at $15 exercise price =$600,000

    Stock issued were 40,000

    Stock reacquired: $600,000 proceeds/$20 current mkt price = 30,000 shares

    shares issued, not reacquired from stock option = 10,000

    325,000 average C/S + 10,000 from options = 335,000 avg share

    What???????? Where did the 325,000 number come from?

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