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  1. business
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  3. in 2022, blossom ltd. issued $40,000 of 7% bonds a

In 2022, Blossom Ltd. Issued $40,000 of 7% bonds at par, with each $1,000 bond...

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Accounting

In 2022, Blossom Ltd. Issued $40,000 of 7% bonds at par, with each $1,000 bond being
convertible into 100 common shares. The company had revenues of $$70,000 and expenses of
$35,000 for 2023, not including interest and tax. (Assume a tax rate of 20%). Throughout 2023,
1,000 common shares were outstanding, and none of the bonds were converted or redeemed.
(For simplicity, assume that the convertible bonds' equity element is not recorded. Please
answer the following questions:
A) Income Available to Common Shareholders? 25760
B) Diluted Earnings per share? (Ignore requirement to record bond debt + equity separate)
C)40 Bonds issued on October 1,2023(rather than in 2022), and that none have been
converted or redeemed. Calculate Diluted EPS for year ended Dec. 31,2023$14.00
D) Assume 5 of the 40 Bonds were converted July 1,2023. Calculate diluted EPS for the
year ended December 31,2021
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