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  3. in 2021 our company had net income of $825,000.

In 2021 Our Company had Net Income of $825,000. ...

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Accounting

In 2021 Our Company had Net Income of $825,000.
On 1/1/21, there were 250,000 shares of common stock outstanding.
On 4/1/21, we issued 54,000 shares of common stock.
On 6/1/21, we issued 36,000 shares of $100 par value, 6% cumulative preferred stock. This preferred stock is convertible into 72,000 shares of common stock.
On 9/1/21, we issued $9,000,000 of 4% bonds at par. These bonds are convertible into 60,000 shares of common stock. The marginal tax rate is 30%.
In addition, there are 130,000 options outstanding at 12/31/21. Each option entitles the holder to exchange it for 1 share of common stock at an exercise price of $22 per share.
The average market price for common stock for 2021 was $60.
Be sure to show your calculations!
Required: Answer:
How much is Basic Earnings Per Share?
How much is Diluted Earnings Per Share?

Answer & Explanation Solved by verified expert
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