Question

It is intermediate accounting question about Dilutive Securities and Earnings per Share (chp16) On 01-01-14, H...

It is intermediate accounting question about Dilutive Securities and Earnings per Share (chp16)

  1. On 01-01-14, H had 2,820,000 shares of common stock issued and outstanding and 100,000 shares of 5%, $50 par value cumulative preferred stock issued and outstanding. The following occurred during 2014:
  • On March 1, H issued 120,000 shares of its common stock..
  • On August 1, H declared and distributed a 5% common stock dividend.
  • On October 1, H reacquired 360,000 shares of its common stock.
  • On December 1, H issued 60,000 shares of its treasury stock.

During 2014, H distributed $500,000 of dividends on its preferred stock and $2,940,000 of dividends on its common stock. H’s net income for 2014 was $8,750,000. H’s income tax rate is 25%.

  • As of 12-31-14, H had $3,000,000 of 5%, 10-year convertible bonds outstanding. H issued the bonds at par during 2011. The bonds can be converted into 40,000 shares of H’s common stock.
  • As of 12-31-14, H had $5,000,000 of 10%, 15-year convertible bonds. H issued the bonds at par during 2004. The bonds can be converted into 90,000 shares of H’s common stock.
  • As of 12-31-14, H had $6,000,000 of 17%, 40-year convertible bonds. H issued the bonds at par during 1980. The bonds can be converted into 100,000 shares of H’s common stock.
  • During the entire year ending 12-31-14, H had 240,000 outstanding and exercisable employee stock options that were granted to employees during 2013. Each option has an exercise price of $48 per share of H common stock. During 2014, the average market price of H’s common stock was $60 per share.
  • During the entire year ending 12-31-14, H had 120,000 outstanding and exercisable employee stock options that were granted to employees during 2010. Each option has an exercise price of $62 per share of H common stock.

What will H report as basic EPS for the year ended 12-31-14? ROUND TO NEAREST PENNY.

What will H report as diluted EPS for the year ended 12-31-14? ROUND TO NEAREST PENNY.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Jake issued $4,000,000 of 10%, 2-year convertible bonds on 01-01-14 when the market rate for similar...
Jake issued $4,000,000 of 10%, 2-year convertible bonds on 01-01-14 when the market rate for similar bonds was 10%. The bonds were dated 01-01-14 with interest payable January 01 and July 01. Jake incurred and paid $45,000 of bond issuance costs. On 07-01-14 after making its interest payments, all of the bonds were converted into 75,000 shares of G's $1 par value common stock. At the time of the conversion, one share of G's common stock was trading for $90...
            On January 2, 2019, Gino Co. issued at par $200,000 of 9% convertible bonds. Each...
            On January 2, 2019, Gino Co. issued at par $200,000 of 9% convertible bonds. Each $1,000 bond is convertible into 20 shares. No bonds were converted during 2019. Gino had 50,000 shares of common stock outstanding during 2019. Gino's 2019 net income was $150,000 and the income tax rate was 25%. Compute Gino's EPS and diluted earnings per share for 2019 (rounded to the nearest penny).
Throughout 2015, Smith had 150,000 shares of common stock outstanding. Smith's net income for the year...
Throughout 2015, Smith had 150,000 shares of common stock outstanding. Smith's net income for the year ended December 31, 2015 was $800,000. Smith's income tax rate is 20%. During 2015, Smith declared and paid dividends on its 10,000 shares of 6% convertible preferred $100 par value stock. Each share of the convertible preferred stock can be converted, at the discretion of the stockholder, into 3 shares of Smith's common stock. During the entire year ending 12-31-15, Smith had 15,000 outstanding...
Question 1: During the year P had 14195 shares of common stock outstanding. P had fully...
Question 1: During the year P had 14195 shares of common stock outstanding. P had fully vested incentive stock options exercisable at $4 per share to obtain 1203 shares of common stock when the average market price and ending market price of the stock of common stock was $50. The net income for the year was $126693. The income tax rate was 37%. For the year diluted EPS was: Question 2: At December 31, 2016 and 2015, P Corp. had...
6. Earnings per Share with Convertible Bonds On January 1, 2019, Houston Company issued, at par,...
6. Earnings per Share with Convertible Bonds On January 1, 2019, Houston Company issued, at par, 600 $1,000 6% bonds. Each bond is convertible into 10 shares of common stock. Houston’s net income for 2019 was $600,000. The tax rate was 20%. Throughout 2019, 100,000 shares of $10 par common stock were outstanding. In addition, 1,000 shares of 5% $100 par cumulative preferred stock were outstanding. No preferred stock dividends were declared during 2019. None of the bonds were converted...
PROBLEM 3             On January 2, 2019, Gino Co. issued at par $200,000 of 9% convertible...
PROBLEM 3             On January 2, 2019, Gino Co. issued at par $200,000 of 9% convertible bonds. Each $1,000 bond is convertible into 20 shares. No bonds were converted during 2019. Gino had 50,000 shares of common stock outstanding during 2019. Gino's 2019 net income was $150,000 and the income tax rate was 25%. Compute Gino's EPS and diluted earnings per share for 2019 (rounded to the nearest penny). Show all computations.
On January 2, 2018, Sunland Company issued at par $9900 of 5% bonds convertible in total...
On January 2, 2018, Sunland Company issued at par $9900 of 5% bonds convertible in total into 1000 shares of Sunland's common stock. No bonds were converted during 2018. Throughout 2018, Sunland had 1000 shares of common stock outstanding. Sunland's 2018 net income was $4500, and its income tax rate is 25%. No potentially dilutive securities other than the convertible bonds were outstanding during 2018. Sunland's diluted earnings per share for 2018 would be (rounded to the nearest penny)
Riggs Corporation has the following balance sheet information at December 31, 2016. Current liabilities $ 800,000...
Riggs Corporation has the following balance sheet information at December 31, 2016. Current liabilities $ 800,000 Convertible bonds ($1,000 par, 5%) 2,000,000 Common stock ($1 par, 300,000 shares issued 300,000 Additional paid-in capital 2,100,000 Retained earnings 3,230,000 Treasury stock (43,000 shares) (1,161,000 ) Total liabilities and shareholders’ equity $ 7,269,000 The convertible bonds were issued at par in 2014 and are convertible into Riggs’s common stock at a ratio of 15 shares of stock to 1 bond. In its December...
Throughout 2015, Smith had 200,000 shares of common stock outstanding. Smith's net income for the year...
Throughout 2015, Smith had 200,000 shares of common stock outstanding. Smith's net income for the year ended December 31, 2015 was $880,000. Smith's income tax rate is 20%. During the entire year ending 12-31-15, Smith had 15,000 outstanding employee stock options. Each option had an exercise price of $60 per share of Smith common stock. During the year ended 12-31-15, the average market price of Smith's common stock was $50 per share. As of 12-31-15, Smith had $10,000,000 of 10%...
At December 31, 2018, Galatia Inc. had 250,000 shares of common stock outstanding. On October 1,...
At December 31, 2018, Galatia Inc. had 250,000 shares of common stock outstanding. On October 1, 2019, an additional 60,000 shares of common stock were issued for cash. Galatia also had $2,000,000 of 10% convertible bonds outstanding at December 31, 2019, which are convertible into 50,000 shares of common stock. The bonds are dilutive in the 2019 earnings per share computation. No bonds were issued or converted into common stock during 2019. What is the number of shares that should...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT