Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. net income for the year $1,210,000 7% conve

Net income for the year $1,210,000 7% convertible...

60.1K

Verified Solution

Question

Accounting

Net income for the year $1,210,000

7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock

2,000,000

6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock

4,080,000

Common stock, $10 par value

6,130,000

Tax rate for 2021

20%

Average market price of common stock

$25 per share

There were no changes during 2021 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 74,200 shares of common stock at $20 per share. (a) Compute basic earnings per share for 2021.

Basic earnings per share

$1.57

(b) Compute diluted earnings per share for 2021.

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

Medical Sciences
1.2K views

Do you produce the same amount of growth hormone, insulin,epinephrine,estrogen,cortisol,thyroxine every hour,every day,every month?

Physics
1.2K views

The timing device in an automobile’s intermittent wiper system is based on an RC circuit and utilizes...

Biology
1.2K views

0 The subphase of interphase in mitosis that is typically the most variable in length...

Physics
1.2K views

When a horizontal force of 190 N is applied to a 69 kg box on...

Geometry
1.2K views

Which of the following statements about JK and JL is true 8 7 y 6...

Basic Math
1.2K views

In a particular school vote 30 of all voters are girls If two voters are...

Statistics
1.2K views

mposition teacher wishes to see whether a new grammar study program will reduce the number...

Calculus
1.2K views

1 Given f x x 3 answer will be an expression involving h 1 find...

Accounting
1.2K views

Company selected: America Eagle Outfitters (AEO) Summary - (Maximum of 1 page) Include a...

Accounting
1.2K views

Independent Auditors Report To the Board of Directors and Stockholders of Lenz Corporation: We have...

Accounting
1.2K views

QS 21-16 (Algo) Volume variance LO P4 Compute the volume variance and identify it as...

Finance
1.2K views

Which of the following statements is true of the dividend growth model? It determines the...