70.2K

Verified Solution

Link Copied!

The following information is taken from the financial statements of TANTA Corporation for the year ended 12/31/2021: Common Stock: - Outstanding since 1/1/2021400,000 shares - Issued 2/28/2021 36,000 shares - 9/1/2021 Retired shares of the common stock: (9,000) shares Preforred stock: - 40,000 shares ( $10.00 par value) non-convertible of 8% cumulative preferred stock outstanding since 1/1/2021. Long Term Debt: - $1,000,000 of 10% interest convertible bonds. Every $1,000 bond is convertible into 50 common shares and was issued in 2019. Other Information: - A 10\% stock dividend was declared and distributes on July 1, 2021. - Net income after tax for 2021 was $900,000. Tax rate is 25%. Required: Calculate: A. Basic Earnings Per share B. Diluted Earnings Per share The following information is taken from the financial statements of TANTA Corporation for the year ended 12/31/2021: Common Stock: - Outstanding since 1/1/2021400,000 shares - Issued 2/28/2021 36,000 shares - 9/1/2021 Retired shares of the common stock: (9,000) shares Preforred stock: - 40,000 shares ( $10.00 par value) non-convertible of 8% cumulative preferred stock outstanding since 1/1/2021. Long Term Debt: - $1,000,000 of 10% interest convertible bonds. Every $1,000 bond is convertible into 50 common shares and was issued in 2019. Other Information: - A 10\% stock dividend was declared and distributes on July 1, 2021. - Net income after tax for 2021 was $900,000. Tax rate is 25%. Required: Calculate: A. Basic Earnings Per share B. Diluted Earnings Per share

Answer & Explanation Solved by verified expert

See Answer