Intermediate Accounting, 17th Edition
Intermediate Accounting, 17th Edition
17th Edition
ISBN: 9781119503682
Author: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Publisher: WILEY
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Chapter 16, Problem 4IST
To determine

Dilutive securities: Dilutive securities are securities that do not take the form of common stock. However, the owner is allowed to obtain the common stock either on conversion or on exercise.

The weighted number of shares that are outstanding gets increased due to dilutive security. This means that the issue of common shares will reduce the earnings per share. This reduction in the earnings is termed as dilution.

To determine the accounting for the bonds.

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