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
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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
3
Potentially
dilutive
security
$5
Preferred
shares
G
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.
$
Incremental
Numerator Effect
Show Transcribed Text
3
Determine an incremental per share effect for the preferred shares. (Round earnings per share to 3 decimal
places, e.g. 15.257.)
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
Transcribed Image Text: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 3 Potentially dilutive security $5 Preferred shares G 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. $ Incremental Numerator Effect Show Transcribed Text 3 Determine an incremental per share effect for the preferred shares. (Round earnings per share to 3 decimal places, e.g. 15.257.) 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
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