Burckel Corporation had 260,000 shares of common stock and 26,000 shares of 7%, $100 par convertible preferred stock outstanding during the year. Net income for the year was $720,000 and dividends were paid to both common and preferred shareholders. Burckel's effective tax rate is 25%. Each share of preferred stock is convertible into five shares of common stock. What is Burckel's diluted EPS (rounded)? Multiple Choice $4.40 $2.52 $1.85 $3,47

Burckel Corporation had 260,000 shares of common stock and 26,000 shares of 7%, $100 par convertible preferred stock outstanding during the year. Net income for the year was $720,000 and dividends were paid to both common and preferred shareholders. Burckel's effective tax rate is 25%. Each share of preferred stock is convertible into five shares of common stock. What is Burckel's diluted EPS (rounded)? Multiple Choice $4.40 $2.52 $1.85 $3,47

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 20EA: Longmont Corporation earned net income of $90,000 this year. The company began the year with 600...

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Longmont Corporation earned net income of $90,000 this year. The company began the year with 600 shares of common stock and issued 500 more on April 1. They issued $5,000 in preferred dividends for the year. What is the numerator of the EPS calculation for Longmont?
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