Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on december 31,2023, chi chow company had outstand

On December 31,2023, Chi Chow Company had outstanding 590,000 shares of common stock and 59,000...

80.2K

Verified Solution

Question

Accounting

On December 31,2023, Chi Chow Company had outstanding 590,000 shares of common stock and 59,000 shares of 8% cumulative preferred stock (par $10).
February 28,2024, issued an additional 55,000 shares of common stock
September 1,2024,10,900 shares were retired.
A 12% stock dividend was declared and distributed on July 1,2024.
At year-end, there were fully vested incentive stock options outstanding for 49,000 shares of common stock (adjusted for the stock dividend). The exercise price was $18. The market price of the common stock averaged $20 during the year. Also outstanding were $1,000,000 face amount of 10% convertible bonds issued in 2021 and convertible into 69,000 common shares (adjusted for the stock dividend). Net income was $1,090,000. The tax rate for the year was 25%.
Required:
Compute basic and diluted EPS for the year ended December 31,2024.

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