1. What amount should be reported as basic EPS for 2022 Problem 19-16 (AICPA Adapted) Strauch Company had one class of share capital outstanding and no other securities that are potentially convertible into ordinary shares. During 2021, 120,000 shares were outstanding. 2. What amount should be reported as basic EPS for 2021 On April 1, 2022, 40,000 shares of treasury were sold, and on July 1, 2022, a 2-for-1 share split was issued. Net income was P6,000,000 in 2022 and P3,600,000 in 202l. 1. What amount should be reported as basic EPS for 2022 in the 2022 comparative income statement? а. 25.00 b. 20.00 c. 18.75 d. 37.50 2. What amount should be reported as basic EPS for 202. in the 2022 comparative income statement? а. 30,00 b. 15.00 с. 45.00 d. 22.50

1. What amount should be reported as basic EPS for 2022 Problem 19-16 (AICPA Adapted) Strauch Company had one class of share capital outstanding and no other securities that are potentially convertible into ordinary shares. During 2021, 120,000 shares were outstanding. 2. What amount should be reported as basic EPS for 2021 On April 1, 2022, 40,000 shares of treasury were sold, and on July 1, 2022, a 2-for-1 share split was issued. Net income was P6,000,000 in 2022 and P3,600,000 in 202l. 1. What amount should be reported as basic EPS for 2022 in the 2022 comparative income statement? а. 25.00 b. 20.00 c. 18.75 d. 37.50 2. What amount should be reported as basic EPS for 202. in the 2022 comparative income statement? а. 30,00 b. 15.00 с. 45.00 d. 22.50

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 28E

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Waseca Company had 5 convertible securities outstanding during all of 2019. It paid the appropriate interest (and amortized any related premium or discount using the straight line method) and dividends on each security during 2019. Each of the convertible securities is described in the following table: Additional data: Net income for 2019 totaled 119,460. The weighted average number of common shares outstanding during 2019 was 40,000 shares. No share options or warrants arc outstanding. The effective corporate income tax rate is 30%. Required: 1. Prepare a schedule that lists the impact of the assumed conversion of each convertible security on diluted earnings per share. 2. Prepare a ranking of the order in which each of the convertible securities should be included in diluted earnings per share. 3. Compute basic earnings per share. 4. Compute diluted earnings per share. 5. Indicate the amount(s) of the earnings per share that Waseca would report on its 2019 income statement.
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