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Nancy Fan Company had 100,000 shares of common stock outstanding on January 1, 2024. On September 30, 2024, Nancy Fan sold 53,000 shares of common stock for cash. Nancy Fan also had 12,500 shares of convertible preferred stock outstanding throughout 2024. The preferred stock is $100 par, 6%, and is convertible into 3 shares of common for each share of preferred. Nancy Fan also had 550, 8%, convertible bonds outstanding throughout 2024. Each $1,000 bond is convertible into 30 shares of common stock. The bonds sold originally at face value. Reported net income for 2024 was $350,000 with a 40% tax rate. Common shareholders received $2.50 per share dividends after preferred dividends were paid in 2024. Required: Compute basic and diluted earnings per share for 2024. Note: Round your answers to 2 decimal places. Basic Diluted Earning per share

Nancy Fan Company had 100,000 shares of common stock outstanding on January 1, 2024. On September 30, 2024, Nancy Fan sold 53,000 shares of common stock for cash. Nancy Fan also had 12,500 shares of convertible preferred stock outstanding throughout 2024. The preferred stock is $100 par, 6%, and is convertible into 3 shares of common for each share of preferred. Nancy Fan also had 550, 8%, convertible bonds outstanding throughout 2024. Each $1,000 bond is convertible into 30 shares of common stock. The bonds sold originally at face value. Reported net income for 2024 was $350,000 with a 40% tax rate. Common shareholders received $2.50 per share dividends after preferred dividends were paid in 2024. Required: Compute basic and diluted earnings per share for 2024. Note: Round your answers to 2 decimal places. Basic Diluted Earning per share

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Nancy Fan Company had 100,000 shares of common stock outstanding on January 1, 2024. On September 30, 2024, Nancy Fan sold 53,000 shares of common stock for cash. Nancy Fan also had 12,500 shares of convertible preferred stock outstanding throughout 2024. The preferred stock is $100 par, 6%, and is convertible into 3 shares of common for each share of preferred. Nancy Fan also had 550,8%, convertible bonds outstanding throughout 2024. Each $1,000 bond is convertible into 30 shares of common stock. The bonds sold originally at face value. Reported net income for 2024 was $350,000 with a 40% tax rate. Common shareholders received $2.50 per share dividends after preferred dividends were paid in 2024. Required: Compute basic and diluted earnings per share for 2024. Note: Round your answers to 2 decimal places. Basic Diluted Earning per share
Transcribed Image Text:Nancy Fan Company had 100,000 shares of common stock outstanding on January 1, 2024. On September 30, 2024, Nancy Fan sold 53,000 shares of common stock for cash. Nancy Fan also had 12,500 shares of convertible preferred stock outstanding throughout 2024. The preferred stock is $100 par, 6%, and is convertible into 3 shares of common for each share of preferred. Nancy Fan also had 550,8%, convertible bonds outstanding throughout 2024. Each $1,000 bond is convertible into 30 shares of common stock. The bonds sold originally at face value. Reported net income for 2024 was $350,000 with a 40% tax rate. Common shareholders received $2.50 per share dividends after preferred dividends were paid in 2024. Required: Compute basic and diluted earnings per share for 2024. Note: Round your answers to 2 decimal places. Basic Diluted Earning per share
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