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[>Electrical Engineering homework help](https://www.sweetstudy.com/fields/engineering-electrical-engineering) I’m a bit confused about how the contingent shares from the Novak acquisition affect EPS. Since the additional 49,400 shares are based on Novak’s 2026 net income, but Novak earned $617,000 i…
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[>Electrical Engineering homework help](https://www.sweetstudy.com/fields/engineering-electrical-engineering)
I’m a bit confused about how the contingent shares from the Novak acquisition affect EPS. Since the additional 49,400 shares are based on Novak’s 2026 net income, but Novak earned $617,000 in 2025, should those shares be considered contingently issuable for Sunland’s 2025 EPS? In other words, when calculating Sunland’s 2025 earnings per share, do we include the 49,400 potential shares in diluted EPS, basic EPS, or not at all?
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