The value of basic and diluted earnings per share of the company. Giveninformation: Common shares outstanding are 320,000. Additional shares issued on August 1 are 120,000 shares. 4% non cumulative preferred stock at the beginning of year is $920,000. Preferred shared can be converted into 10,000 shares of common stock. Value of bonds outstanding on February 1 is $8,000,000. Outstanding shares of convertible options are 180,000 shares. Effective tax rate is 40%. Net income is $2,800,000.

Question

Want to see the full answer?

Answer 1

Question

Chapter 20, Problem 20.2P

a.

To determine

The value of basic and diluted earnings per share of the company.

Giveninformation:

Common shares outstanding are 320,000.

Additional shares issued on August 1 are 120,000 shares.

4% non cumulative preferred stock at the beginning of year is $920,000.

Preferred shared can be converted into 10,000 shares of common stock.

Value of bonds outstanding on February 1 is $8,000,000.

Outstanding shares of convertible options are 180,000 shares.

Effective tax rate is 40%.

Net income is $2,800,000.

b.

To determine

To prepare: The earnings per share disclosure on the income statement beginning with income of continuous operations.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Financial accounting questions

Tribble company has provided the following data solve this question general Accounting

Financial Accounting Problem 6.8

Answer 2

Question

Chapter 20, Problem 20.2P

a.

To determine

The value of basic and diluted earnings per share of the company.

Giveninformation:

Common shares outstanding are 320,000.

Additional shares issued on August 1 are 120,000 shares.

4% non cumulative preferred stock at the beginning of year is $920,000.

Preferred shared can be converted into 10,000 shares of common stock.

Value of bonds outstanding on February 1 is $8,000,000.

Outstanding shares of convertible options are 180,000 shares.

Effective tax rate is 40%.

Net income is $2,800,000.

b.

To determine

To prepare: The earnings per share disclosure on the income statement beginning with income of continuous operations.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 20, Problem 20.2P

a.

To determine

The value of basic and diluted earnings per share of the company.

Giveninformation:

Common shares outstanding are 320,000.

Additional shares issued on August 1 are 120,000 shares.

4% non cumulative preferred stock at the beginning of year is $920,000.

Preferred shared can be converted into 10,000 shares of common stock.

Value of bonds outstanding on February 1 is $8,000,000.

Outstanding shares of convertible options are 180,000 shares.

Effective tax rate is 40%.

Net income is $2,800,000.

b.

To determine

To prepare: The earnings per share disclosure on the income statement beginning with income of continuous operations.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 20, Problem 20.2P

a.

To determine

The value of basic and diluted earnings per share of the company.

Giveninformation:

Common shares outstanding are 320,000.

Additional shares issued on August 1 are 120,000 shares.

4% non cumulative preferred stock at the beginning of year is $920,000.

Preferred shared can be converted into 10,000 shares of common stock.

Value of bonds outstanding on February 1 is $8,000,000.

Outstanding shares of convertible options are 180,000 shares.

Effective tax rate is 40%.

Net income is $2,800,000.

b.

To determine

To prepare: The earnings per share disclosure on the income statement beginning with income of continuous operations.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 20, Problem 20.2P

a.

To determine

The value of basic and diluted earnings per share of the company.

Giveninformation:

Common shares outstanding are 320,000.

Additional shares issued on August 1 are 120,000 shares.

4% non cumulative preferred stock at the beginning of year is $920,000.

Preferred shared can be converted into 10,000 shares of common stock.

Value of bonds outstanding on February 1 is $8,000,000.

Outstanding shares of convertible options are 180,000 shares.

Effective tax rate is 40%.

Net income is $2,800,000.

b.

To determine

To prepare: The earnings per share disclosure on the income statement beginning with income of continuous operations.

Answer 6

Chapter 20, Problem 20.2P

a.

To determine

The value of basic and diluted earnings per share of the company.

Giveninformation:

Common shares outstanding are 320,000.

Additional shares issued on August 1 are 120,000 shares.

4% non cumulative preferred stock at the beginning of year is $920,000.

Preferred shared can be converted into 10,000 shares of common stock.

Value of bonds outstanding on February 1 is $8,000,000.

Outstanding shares of convertible options are 180,000 shares.

Effective tax rate is 40%.

Net income is $2,800,000.

Answer 7

Chapter 20, Problem 20.2P

a.

To determine

The value of basic and diluted earnings per share of the company.

Giveninformation:

Common shares outstanding are 320,000.

Additional shares issued on August 1 are 120,000 shares.

4% non cumulative preferred stock at the beginning of year is $920,000.

Preferred shared can be converted into 10,000 shares of common stock.

Value of bonds outstanding on February 1 is $8,000,000.

Outstanding shares of convertible options are 180,000 shares.

Effective tax rate is 40%.

Net income is $2,800,000.

Answer 8

b.

To determine

To prepare: The earnings per share disclosure on the income statement beginning with income of continuous operations.

Answer 9

b.

To determine

To prepare: The earnings per share disclosure on the income statement beginning with income of continuous operations.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 13

Ch. 20 - Prob. 20.1Q Ch. 20 - Prob. 20.2Q Ch. 20 - If-Converted Method. Does the if-converted...Ch. 20 - Diluted EPS. If all potentially dilutive...Ch. 20 - Diluted EPS. Can diluted earnings per share on...Ch. 20 - Diluted EPS, Convertible Debt, and Preferred...Ch. 20 - Prob. 20.7Q Ch. 20 - Prob. 20.8Q Ch. 20 - Prob. 20.9Q Ch. 20 - EPS Disclosures. is an entity required to present...

Solution Summary: The author explains the value of basic and diluted earnings per share of the company.

Videos

To prepare: The earnings per share disclosure on the income statement beginning with income of continuous operations.

Want to see the full answer?

Chapter 20 Solutions