Whispering Inc. had 502,000 common shares outstanding for the entire fiscal year ended August 31, 2023. Whispering also had 105,000 $3 cumulative, no-par value preferred shares outstanding for the full year. Options were written at the start of the fiscal year to purchase 32,000 common shares at $16 per share. The average market price of Whispering's common shares during the year ended August 31, 2023 was $25 per share. The options expire in 2032, and none were actually exercised during the current year. Also outstanding for the entire year was a 7% bond with a face value of $4,600,000, convertible to 115,000 common shares. Whispering Inc's net income for the year was $2,724,600, and the income tax rate for the fiscal year was 40%. Calculate an incremental per share effect for the 7% bonds. (Round earnings per share to 3 decimal places, e.g. 15.25.) Potentially dilutive security Incremental Numerator Effect 7% Bonds eTextbook and Media Calculate the proceeds from assumed exercise of 32,000 options. Proceeds from exercise of options eTextbook and Media Incremental Denominator Effect EPS $ Calculate the incremental shares outstanding upon the exercise of options. Incremental shares oustanding upon the exercise of options

Whispering Inc. had 502,000 common shares outstanding for the entire fiscal year ended August 31, 2023. Whispering also had 105,000 $3 cumulative, no-par value preferred shares outstanding for the full year. Options were written at the start of the fiscal year to purchase 32,000 common shares at $16 per share. The average market price of Whispering's common shares during the year ended August 31, 2023 was $25 per share. The options expire in 2032, and none were actually exercised during the current year. Also outstanding for the entire year was a 7% bond with a face value of $4,600,000, convertible to 115,000 common shares. Whispering Inc's net income for the year was $2,724,600, and the income tax rate for the fiscal year was 40%. Calculate an incremental per share effect for the 7% bonds. (Round earnings per share to 3 decimal places, e.g. 15.25.) Potentially dilutive security Incremental Numerator Effect 7% Bonds eTextbook and Media Calculate the proceeds from assumed exercise of 32,000 options. Proceeds from exercise of options eTextbook and Media Incremental Denominator Effect EPS $ Calculate the incremental shares outstanding upon the exercise of options. Incremental shares oustanding upon the exercise of options

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 10MC

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In the financial year to June 30, 2021, HIFI Ltd issued options for 400,000 shares. During that perlod, the average fair value of one ordinary share was $32 while the evercise price for the shares under option was $26. The company commenced the financial year with 940,000 ordinary shares in issue, while profit for the year amounted to $921.000. REQUIRED: Calculate BEPS and DEPS for the year.
Razi Co. had net income for 2021 of $300,000. The average number of shares outstanding for the period was 200,000 shares. The average number of shares under outstanding options, at an option price of $30 per share is 12,000 shares. The average market price of the ordinary shares during the year was $36. What should Razi Co, report for diluted earnings per share for the year ended 2021? Select one: a.$1.50 $1.49 C.$1.42 d.1.43
(b) Calculate basic earnings per share. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately). (Round answer to 2 decimal places, e.g. 15.25.) Basic EPS eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer
Options were granted on January 1, 2023by Paltel Co. to purchase 15,000 common shares at an exercise price of $22. The average market price of Paltel's common stock during 2023 was $30 per share. Calculate the incremental shares (denominator) for these options on December 31, 2023.
Ayayai Company’s net income for 2020 is $52,900. The only potentially dilutive securities outstanding were 1,040 options issued October 1, 2020. Each exercisable for one share at $6. None has been exercised, and 10,900 shares of common were outstanding during 2020. The average market price of Ayayai’s stock during 2020 was $20. The average market price during the last 3 months of 2020 was $20. Compute Diluted Earnings Per Share
Company B had net income for the fiscal year ended December 31, 2020 of $5 million. There were 500,000 common shares outstanding throughout 2020. The average market price of the common shares for the entire fiscal year was $50. Company tax rate was 25% for 2020. Company B had the following potential common shares outstanding during 2020: • Options to buy 100,000 common shares at $45 per share. • 100,000 convertible preferred shares entitled to a cumulative dividend of $10 per share. Each preferred share is convertible into 1.5 common shares. • 4% convertible bonds with a principal amount of $30 million, issued at par. Each $1,000 bond is convertible into 25 common shares. For the fiscal year ended December 31, 2020, what is the basic and diluted EPS using IFRS?
During 2020, Empresas ABC issued 4,000 preferred shares with a par value of $ 10 to $ 11 each. Each preferred share can be exchanged at the option of the holder (investor) for three common shares of ABC with a par value of $ 1. In August 2021, all preferred shares were exchanged. At that time the market value of the common stock was $ 5 per share. What amount must ABC credit to the Capital account contributed in excess of the value for common shares? a. $32,000 b. $48,000 c. 0 d. $44,000
GMA Co. had 900,000 ordinary shares issued and outstanding at December 31, 2019. On July 1, 2020 an additional 750,000 shares were issued for cash. GMA Co. also had share options outstanding at the beginning and end of 2020 which allow the holders to purchase 225,000 ordinary shares at P20 per share. The average market price of GMA Co.'s ordinary shares was P25 during 2020. What is the number of shares that should be used in computing diluted earnings per share for the year ended December 31, 2020?A. 1,695,000B. 1,455,000C. 1,331,250D. 1,320,000
GMA Co. had 900,000 ordinary shares issued and outstanding at December 31, 2019. On July 1, 2020 an additional 750,000 shares were issued for cash. GMA Co. also had share options outstanding at the beginning and end of 2020 which allow the holders to purchase 225,000 ordinary shares at P20 per share. The average market price of GMA Co.'s ordinary shares was P25 during 2020. What is the number of shares that should be used in computing diluted earnings per share for the year ended December 31, 2020? A. 1,695,000 B. 1,455,000 C. 1,331,250 D. 1,320,000 E. answer not given
Bramble Corp. had net income for 2021 of $598000. The average number of shares outstanding for the period was 200000 shares. The average number of shares under outstanding options, at an option price of $30 per share is 11700 shares. The average market price of the common stock during the year was $36. What should Bramble Corp. report for diluted earnings per share for the year ended 2021?
On January 1, 2020, Hage Corporation granted incentive stock options to purchase 26,000 of its common shares at $7 each. The options are exercisable after one year. The market price of common averaged $8 per share during the quarter ending on March 31, 2021. There was no change in the 220,000 shares of outstanding common stock during the quarter ended March 31, 2021. Net income for the quarter was $9,068. The number of shares to be used in computing diluted earnings per share for the quarter is: (Round your final answer to whole number.)
Venzuela Company's net income for 2020 is $50,000. The only potentially dilutive securities outstanding were 1,000 options issued during 2019, each exercisable for one share at $6. None has been exercised, and 10,000 shares of common were outstanding during 2020. The average market price of Venzuela's stock during 2020 was $20. Instructions a. Compute diluted earnings per share. (Round to nearest cent.) b. Assume the same facts as those assumed for part (a), except that the 1,000 options were issued on October 1, 2020 (rather than in 2019). The average market price during the last 3 months of 2020 was $20.