During 2016, Moore Corp. had the following two classes of stock issued and outstanding for the entire year: • 100,000 shares of common stock, $1 par. • 1,000 shares of 4% preferred stock, $100 par, convertible share for share into common stock. Moore’s 2016 net income was $900,000, and its income tax rate for the year was 30%. In the computation of diluted earnings per share for 2016, the amount to be used in the numerator is a. $896,000 b. $898,800 c. $900,000 d. $901,200
During 2016, Moore Corp. had the following two classes of stock issued and outstanding for the entire year: • 100,000 shares of common stock, $1 par. • 1,000 shares of 4% preferred stock, $100 par, convertible share for share into common stock. Moore’s 2016 net income was $900,000, and its income tax rate for the year was 30%. In the computation of diluted earnings per share for 2016, the amount to be used in the numerator is a. $896,000 b. $898,800 c. $900,000 d. $901,200
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter13: Financial Statement Analysis
Section: Chapter Questions
Problem 13.16E
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During 2016, Moore Corp. had the following two classes of stock issued and outstanding for the entire year:
• 100,000 shares of common stock, $1 par.
• 1,000 shares of 4%
Moore’s 2016 net income was $900,000, and its income tax rate for the year was 30%. In the computation of
diluted earnings per share for 2016, the amount to be used in the numerator is
a. $896,000
b. $898,800
c. $900,000
d. $901,200
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