Accounting -NET INCOME FOR THE YEAR 1,200,000

| January 30, 2017

Question
NET INCOME FOR THE YEAR 1,200,000

8% convertible bonds issued at par($1000 per bond) each

bond is convertible to 30 shares of common stock 2,000,000

6%convertible, cumulative preferred stock, $100 par value. Each

bond is convertible into 3 shares of common stock 4,000,000

Common stock, $10 par value

Tax rate for 2010 40%

Average market price of common stock $25 per share

There were no changes during 2010 in the number of common shares, preferred share, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in prior year) to purchase 75,000 shares of common stock at $20 per share.

(a) Compute basic earnings per share for 2010.

(b) Compute diluted earnings per share for 2010.

60,000 shares of common stock converted.

120,000 shares of common stock converted from preferred stock.

600,000 Common stock

Get a 30 % discount on an order above $ 50
Use the following coupon code:
COCONUT
Order your essay today and save 30% with the discount code: COCONUTOrder Now
Positive SSL