FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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InterTractor America, Inc. reported net income (amounts in thousands) of $1,239,400 for 2017. Included in net income was income tax expense of $20,800. During the year the company paid the preferred shareholders $18,000 in dividends. The weighted average of common shares outstanding during 2017 was 937,620 shares. InterTractor America, Inc. subtracted interest expense (net of tax saving) on convertible debt of $9,640. If the convertible debt had been converted into common stock, it would have increased the weighted average common shares outstanding by 41,810 shares. InterTractor America, Inc. has outstanding stock options that, if exercised, would increase the weighted average of common shares outstanding by 14,670 shares.
REQUIRED:
Compute both basic and diluted earnings per share (EPS) for 2017, showing supporting computations.
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