Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on december 31, 2021, monty co. had 220,000 common

On December 31, 2021, Monty Co. had 220,000 common shares outstanding. The company also had...

70.2K

Verified Solution

Question

Accounting

On December 31, 2021, Monty Co. had 220,000 common shares outstanding. The company also had outstanding a convertible bond with a face value of $ 94,500 that had been issued in 2015. The bond paid 6% interest per year and was convertible to 1,890 common shares. Monty Co. had net income for 2021 of $ 902,000 and was subject to a 30% income tax rate. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately).

(a)

Calculate basic earnings per share. (Round answer to 2 decimal places, e.g. 15.25.)

Basic earnings per share $ Enter your answer in accordance to the question statement

(b)

Calculate diluted earnings per share. (Round answer to 2 decimal places, e.g. 15.25.)

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