TRI reported holding five securities on January 1, 2021. There were no equity related transactions during the year and thus these remained unchanged throughout the year. You are provided the following particulars about the basic EPS plus the incremental effect per share required for the calculation of diluted EPS for each of the five securities are listed below: Adjusted Income ($) Shares Basic EPS $1,659,000 350,000 Security Change In Income Change In Shares Call Options $0 (21,000) Convertible Bonds $147,000 36,750 Convertible Preferred Shares $84,000 42,000 Put Options $0 14,000 Warrants $0 64,000 determine the diluted EPS and identify if any of the securities are excluded from the computation. [Round your final answers to the nearest cent]. Select one: a. The diluted EPS is $3.71. The Call Options and convertible bonds are excluded as they are anti-dilutive. b. The diluted EPS is $4.67. The three options are to be excluded as IFRS requires all derivative securities to be excluded from the calculation of diluted EPS. c. The diluted EPS is $4.74 being the same as the Basic EPS. All five securities are to be excluded since they have not actually been converted and are only assumed to have been converted. IFRS does not allow reporting based upon mere assumptions. d. The diluted EPS is $3.88 . The Call Options and the Convertible Bonds are excluded as they are anti-dilutive. e. None of the above.

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 21P: Waseca Company had 5 convertible securities outstanding during all of 2019. It paid the appropriate...

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TRI reported holding five securities on January 1, 2021. There were no equity related transactions during the year and thus these remained unchanged throughout the year. You are provided the following particulars about the basic EPS plus the incremental effect per share required for the calculation of diluted EPS for each of the five securities are listed below:

	Adjusted Income ($)	Shares
Basic EPS	$1,659,000	350,000
Security	Change In Income	Change In Shares
Call Options	$0	(21,000)
Convertible Bonds	$147,000	36,750
Convertible Preferred Shares	$84,000	42,000
Put Options	$0	14,000
Warrants	$0	64,000

determine the diluted EPS and identify if any of the securities are excluded from the computation. [Round your final answers to the nearest cent].

Select one:

The diluted EPS is $3.71. The Call Options and convertible bonds are excluded as they are anti-dilutive.

The diluted EPS is $4.67. The three options are to be excluded as IFRS requires all derivative securities to be excluded from the calculation of diluted EPS.

The diluted EPS is $4.74 being the same as the Basic EPS. All five securities are to be excluded since they have not actually been converted and are only assumed to have been converted. IFRS does not allow reporting based upon mere assumptions.

The diluted EPS is $3.88 . The Call Options and the Convertible Bonds are excluded as they are anti-dilutive.

None of the above.

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