Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Chapter 20, Problem 20.3P
Computing Basic and Diluted EPS. Convertible Bonds, Convertible Preferred Stock, Disclosures. Daphne Company provided the following share information for the current year. Daphne reported income from continuing operations of $1,100,000 and a $450,000 loss from discontinued operations net of tax. The company is subject to a 40% tax rate.
| Event and Date | Number of Shares |
| 1/1 Beginning balance | 150,000 |
| 5/1 New share issue | 345,000 |
| 7/1 Two-for-one stock split | |
| 10/1 New share issue | 300,000 |
| 12/1 |
(120,000) |
Daphne has $400,000 3% convertible debt outstanding as of the beginning of the year. The debt was issued at par. Each $1,000 par
Required
- a. Compute basic and diluted earnings per share for income from both continuing operations and net income Show all computations
- b. Prepare all required disclosures beginning with income from continuing operations.
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Fair Value Journal Entries, Available-for-Sale Investments
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Year 1 Sept. 12 fill in the blank fb2219094fa204f_2fill in the blank fb2219094fa204f_4Year 1 Dec. 31 fill in the blank fb2219094fa204f_6fill in the blank fb2219094fa204f_8b. How is the unrealized gain or loss for available-for-sale investments disclosed on the financial…
DDD Company had the following ordinary share transactions for the current year:
January 1
Beginning balance, 120,000 shares, P50 par
June 1
Issued 12,000 shares at P60 per share
September 30
Purchased 24,000 shares at P55 per share to be held as treasury
The entity reported net income of P3,630,000, after an expropriation loss of P605,000 for the current year.
Questions:
1. Compute for the average shares outstanding.
2. Compute for the basic earnings per share.
Chapter 20 Solutions
Intermediate Accounting
Ch. 20 - Prob. 20.1QCh. 20 - Prob. 20.2QCh. 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. 20.7QCh. 20 - Prob. 20.8QCh. 20 - Prob. 20.9QCh. 20 - EPS Disclosures. is an entity required to present...
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