Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. in 2021 our company had net income of $825,000.

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

60.1K

Verified Solution

Question

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
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

interval notation Also express it as an inequality involving x aph What is the resulting...

Accounting
1.2K views

In 2018, Gray Corporation, a calendar year C corporation, has a$75,000 charitable contribution carryover...

Statistics
1.2K views

•An automobile insurer has found that repair claims have a mean of $920 and a standard...

Chemistry
1.2K views

500kgh-1 of a 10% w/w solutionof a compoun X(OH)2 is to be treated using a 5%...

Medical Sciences
1.2K views

need to know a, b, and c A. compare the structures and physiology of the sense...

Basic Math
1.2K views

QD Corporation makes paints known for their quality and quick drying features. QD has developed a...

Biology
1.2K views

Question 14 Identify the parasite from the ar

Geometry
1.2K views

In ATUV Y is the centroid 8 If YW 9 find TY and TW 9...

Calculus
1.2K views

Let y 16y 0 Find all values of r such that y separated list ker...

Algebra
1.2K views

Solve the equation x 12 X 4 X Type an integer or a simplified fraction...

Accounting
1.2K views

A preferred stock from Duquesne Light Company (DQUPRA) pays $3.20 in annual dividends. If the...

Finance
1.2K views

Seneca Hill Winery recently purchased land for the purpose of establishing a new vincyard. Management...