Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on december 31, 2020, berclair inc. had 480 millio

On December 31, 2020, Berclair Inc. had 480 million shares of common stock and 3...

70.2K

Verified Solution

Question

Accounting

image
On December 31, 2020, Berclair Inc. had 480 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 24 million shares of its common stock as treasury stock Berclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2021, was $750 million. The income tax rate is 25%. Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2016. The options are exercisable as of September 13, 2020, for 30 million common shares at an exercise price of $56 per share. During 2021, the market price of the common shares averaged $70 per share. In 2017, $50.0 million of 8% bonds, convertible into 6 million common shares were issued at face value. Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in millions (ie, 10,000,000 should be entered as 10). Do not round intermediate calculations.) Denominator Earnings per Share Basic Numerator 1 $ 100 / 1 0 Diluted 0

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

Statistics
1.2K views

In the lecture, we covered the “pooled-testing” problem, namely when you do blood test on large...

Chemistry
1.2K views

Tungsten trioxide (WO3) has a rich yellow color and is often used as a pigment in...

Biology
1.2K views

Aside from the loss of hope and confidence around the world and the possibilities of...

Basic Math
1.2K views

The highway mileage (mpg) for a sample of 8 different models of a car company...

Calculus
1.2K views

8 ft 10 ft Q Find the area of the trapezoid pictured above Select an...

Algebra
1.2K views

1 1 We put V v1 2 and W 3 Let t and w a...

Algebra
1.2K views

n+4 <-15A) n<-19: -24 -22 -20 -18 -16B) n>-60 : -66 -64 -62 -60 -58C)...

Algebra
1.2K views

Which graph shows the most accurate line of best fit on the scatterplot?Time Watching TV...

Accounting
1.2K views

QS 22-20 (Algo) Cash conversion cycle LO A4 (1) Use the information below to compute...

Accounting
1.2K views

The following information was compiled for company ABC. Beginning retained earnings$5,000 Liabilities at...

Accounting
1.2K views

Sentra Limited is a public company whose headquarters is in Johannesburg, South Africa. It is...

Finance
1.2K views

MY NOTES The Taylors have purchased a $240,000 house. They made an initial down payment...