Computing EPS: Simple Capital Structure At the end of 2020, the records of Block Corporation reflected the following. Common stock, $5 par, authorized 1,500,000 shares Outstanding January 1, 2020, 1,200,000 shares $6,000,000 Sold and issued April 1, 2020, 6,000 shares 30,000 Issued 5% stock dividend, September 30, 2020; 60,300 shares 301,500 Preferred stock, 6%, $10 par, nonconvertible, noncumulative, authorized 150,000 shares Outstanding during year, 60,000 shares 600,000 Paid-in capital in excess of par, common stock 540,000 Paid-in capital in excess of par, preferred stock 300,000 Retained earnings (after the effects of current preferred dividends declared during 2020) 1,920,000 Bonds payable, 6.5%, nonconvertible, issued at par January 1, 2020 3,000,000 Net income 1,476,000 Income tax rate, 25% a. What EPS presentation is required—basic, diluted, or both? AnswerBasic EPSDiluted EPSBasic and Diluted EPS b. Compute the required EPS amount(s). Note: Round earnings per share amount to two decimal places. Net Income Available to Common Stockholders Weighted Avg. Common Shares Outstanding Per Share AnswerBasic EPSDiluted EPSBasic and Diluted EPS Answer Answer Answer c. Compute the required EPS amount(s), assuming that the preferred stock is cumulative. Note: Round earnings per share amount to two decimal places. Net Income Available to Common Stockholders Weighted Avg. Common Shares Outstanding Per Share AnswerBasic EPSDiluted EPSBasic and Diluted EPS Answer Answer Answer
Computing EPS: Simple Capital Structure At the end of 2020, the records of Block Corporation reflected the following. Common stock, $5 par, authorized 1,500,000 shares Outstanding January 1, 2020, 1,200,000 shares $6,000,000 Sold and issued April 1, 2020, 6,000 shares 30,000 Issued 5% stock dividend, September 30, 2020; 60,300 shares 301,500 Preferred stock, 6%, $10 par, nonconvertible, noncumulative, authorized 150,000 shares Outstanding during year, 60,000 shares 600,000 Paid-in capital in excess of par, common stock 540,000 Paid-in capital in excess of par, preferred stock 300,000 Retained earnings (after the effects of current preferred dividends declared during 2020) 1,920,000 Bonds payable, 6.5%, nonconvertible, issued at par January 1, 2020 3,000,000 Net income 1,476,000 Income tax rate, 25% a. What EPS presentation is required—basic, diluted, or both? AnswerBasic EPSDiluted EPSBasic and Diluted EPS b. Compute the required EPS amount(s). Note: Round earnings per share amount to two decimal places. Net Income Available to Common Stockholders Weighted Avg. Common Shares Outstanding Per Share AnswerBasic EPSDiluted EPSBasic and Diluted EPS Answer Answer Answer c. Compute the required EPS amount(s), assuming that the preferred stock is cumulative. Note: Round earnings per share amount to two decimal places. Net Income Available to Common Stockholders Weighted Avg. Common Shares Outstanding Per Share AnswerBasic EPSDiluted EPSBasic and Diluted EPS Answer Answer Answer
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
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Problem 26E: Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of...
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Computing EPS: Simple Capital Structure
At the end of 2020, the records of Block Corporation reflected the following.
Common stock, $5 par, authorized 1,500,000 shares | ||
Outstanding January 1, 2020, 1,200,000 shares | $6,000,000 | |
Sold and issued April 1, 2020, 6,000 shares | 30,000 | |
Issued 5% stock dividend, September 30, 2020; 60,300 shares | 301,500 | |
Preferred stock, 6%, $10 par, nonconvertible, noncumulative, authorized 150,000 shares | ||
Outstanding during year, 60,000 shares | 600,000 | |
Paid-in capital in excess of par, common stock | 540,000 | |
Paid-in capital in excess of par, preferred stock | 300,000 | |
1,920,000 | ||
Bonds payable, 6.5%, nonconvertible, issued at par January 1, 2020 | 3,000,000 | |
Net income | 1,476,000 | |
Income tax rate, 25% |
a. What EPS presentation is required—basic, diluted, or both?
AnswerBasic EPSDiluted EPSBasic and Diluted EPS
|
b. Compute the required EPS amount(s).
- Note: Round earnings per share amount to two decimal places.
Net Income Available to Common Stockholders |
Weighted Avg. Common Shares Outstanding |
Per Share |
|
---|---|---|---|
AnswerBasic EPSDiluted EPSBasic and Diluted EPS
|
Answer
|
Answer
|
Answer
|
c. Compute the required EPS amount(s), assuming that the preferred stock is cumulative.
- Note: Round earnings per share amount to two decimal places.
Net Income Available to Common Stockholders |
Weighted Avg. Common Shares Outstanding |
Per Share |
|
---|---|---|---|
AnswerBasic EPSDiluted EPSBasic and Diluted EPS
|
Answer
|
Answer
|
Answer
|
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