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Linnel Company had 30,000 shares of common stock outstanding on January 1 and issued an...

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Accounting

Linnel Company had 30,000 shares of common stock outstanding on January 1 and issued an additional 9,000 on August 1 of 2016. The company also has $100,000 of 8% convertible bonds outstanding during the year. Each $1,000 bond is convertible into 20 shares of common stock. Linnel had net income for the year of $165,000, and the tax rate was 30%.

Required: Please calculate the gross income, Taxable Income and the Income tax expense and then calculate Diluted Earning Per Share for Linnel Company.

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