a)Following is information taken from Tamarisk Inc.'s December 31, 2023 SFP:5% bonds payable, $6,069,000 maturing December 31, 2025,each $1,000 bond convertible into 22 common shares8% bonds payable, $5,192,000, maturing December 31, 2026,each $1,000 bond convertible into 30 common shares at any time up to December 31, 2026Cumulative preferred shares, $5, no-par value, convertible at1 preferred share for 4 common shares, 53,900 shares outstandingCommon shares, no par-value, 3,081,000 shares outstandingShow Transcribed Text3Potentiallydilutivesecurity$5PreferredsharesGTamarisk's net income for 2023 was $8,579,400, and the company was subject to an income tax rate of 20%.Both classes of bonds were outstanding the entire year, as were the preferred shares. The weighted-averagenumber of common shares outstanding during the period was 3,613,000.$IncrementalNumerator EffectShow Transcribed Text3Determine an incremental per share effect for the preferred shares. (Round earnings per share to 3 decimalplaces, e.g. 15.257.)IncrementalDenominator Effectb) Calculate Tamarisk's diluted EPS for 2023. (round to 3 d.p)Please show clear working thanks!$6,069,000$$5,192,000EPS$1,078,000

According to the question given, we need to compute the diluted EPS, and, incremental EPS due to…

a) Following is information taken from Tamarisk Inc's December 31, 2023 SFP: 5% bonds payable, $6,069,000 maturing December 31, 2025, each $1,000 bond convertible into 22 common shares 8% bonds payable, $5,192,000, maturing December 31, 2026, each $1,000 bond convertible into 30 common shares at any time up to December 31, 2026 Cumulative preferred shares, $5, no-par value, convertible at 1 preferred share for 4 common shares, 53,900 shares outstanding Common shares, no par-value, 3,081,000 shares outstanding Show Transcribed Text S Potentially dilutive security Tamarisk's net income for 2023 was $8,579,400, and the company was subject to an income tax rate of 20%. Both classes of bonds were outstanding the entire year, as were the preferred shares. The weighted-average number of common shares outstanding during the period was 3,613,000. $5 Preferred shares $ Incremental Numerator Effect Determine an incremental per share effect for the preferred shares. (Round earnings per share to 3 decimal places, e.g. 15.257.) Show Transcribed Text 3 Incremental Denominator Effect b) Calculate Tamarisk's diluted EPS for 2023. (round to 3 d.p) Please show clear working thanks! $6,069,000 $ $5,192,000 EPS $1,078,000

a) Following is information taken from Tamarisk Inc's December 31, 2023 SFP: 5% bonds payable, $6,069,000 maturing December 31, 2025, each $1,000 bond convertible into 22 common shares 8% bonds payable, $5,192,000, maturing December 31, 2026, each $1,000 bond convertible into 30 common shares at any time up to December 31, 2026 Cumulative preferred shares, $5, no-par value, convertible at 1 preferred share for 4 common shares, 53,900 shares outstanding Common shares, no par-value, 3,081,000 shares outstanding Show Transcribed Text S Potentially dilutive security Tamarisk's net income for 2023 was $8,579,400, and the company was subject to an income tax rate of 20%. Both classes of bonds were outstanding the entire year, as were the preferred shares. The weighted-average number of common shares outstanding during the period was 3,613,000. $5 Preferred shares $ Incremental Numerator Effect Determine an incremental per share effect for the preferred shares. (Round earnings per share to 3 decimal places, e.g. 15.257.) Show Transcribed Text 3 Incremental Denominator Effect b) Calculate Tamarisk's diluted EPS for 2023. (round to 3 d.p) Please show clear working thanks! $6,069,000 $ $5,192,000 EPS $1,078,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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