During 2020, ABC Co. had net income of $900,000. The company has 20,000 shares of 5%, $100 par, convertible preferred stock outstanding, and 1,500, 10% convertible bonds outstanding, which were issued at par. The preferred shares and the convertible bonds were issued in 2017. Each share of convertible preferred stock is convertible into 5 shares of common stock. Each bond is convertible into 90 shares of common stock. The company has a tax rate of 21% and a weighted average shares outstanding of 800,000 throughout 2020. Instructions: Compute Basic EPS for 2020 Compute Diluted EPS for 2020 Please type your answers in the text-box below. Please show your work using the EPS formula equations.

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A: 1. Journal entry to record the original issuance of the convertible debentures. Date   Account…

Q: On January 1, 2020, Windsor Company issued 10-year, $ 2,010,000 face value,  6% bonds, at par. Each…

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Q: Marigold Inc. had net income for the current year ending December 31, 2020 of $872,880. During the…

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Q: ,000 and the income tax rate was 20%. Diluted earnings per share for 2021 is (rounded to the nearest…

A:

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A: EPS means earnings available for each equity shareholder. Diluted EPS means when earnings of the…

Q: If income tax rate is 30%, how much is the diluted EPS for the year ended December 31 , 2020

A: Formula: Diluted EPS=Net Income-Preferred Dividend PaidWeighted Avarage No of common shares+…

Q: ardent co has 5,000,000 ordinary shares of 25 cents each in issue,and also had an issue in 2019;…

A: Ordinary shares= $5,000,000 of 25 cents 14% convertible loan stock= $1,000,000 convertible in three…

Q: On January 1, 2020, Coronado Company issued 10-year, $2,060,000 face value, 6% bonds, at par. Each…

A: Diluted Earnings per share: Diluted EPS is a calculation used to gauge the quality of a company's…

Q: The Ohana Corporation has 20,000 shares of common stock outstanding throughout 2021. In addition,…

A: Diluted EPS = Net Income+After Tax Cost of InterestCommon Shares Outstanding + Additional shares to…

Q: On December 31, 2019, VENUS Company had 450,000 shares of ordinary shares outstanding. On September…

A: EPS stands for earnings per share which denotes the earnings which are available to distribute to…

Q: Compute diluted earnings per share for 2020 Diluted earnings per share_______ b) Compute diluted…

A: Interest on bonds = Face value x rate of interest = $1,800,000 x 6% = $108,000 Saving in interest…

Q: ABC Co. had 200,000 ordinary shares, 20,000 convertible preference shares, and P1,000,000 of 5%…

A: When all convertible securities are exercised, diluted EPS is used to assess the consistency of a…

Q: On January 1, 2018, when its $30 par value common stock was selling for$80 per share, a corporation…

A: Journal entry is the primary reporting of the transactions in the account books.

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A: Basic Earning Per share is Profit available for equity shareholders divided by Weighted no. of…

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A: The computation of the Basic earnings per share for 2021 is as follows:

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A: Diluted Shares can be referred as the total number of shares which the corporation has at the…

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A:

Q: ABC Corporation’s capital structure includes 105,000 ordinary shares outstanding since 2020 and…

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A: (a)   Calculate Diluted Earnings Per Share for 2020.

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A: Diluted Earnings per Share = Adjusted Net income /Weighted Average Shares

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A: Earnings per share is the ratio which is used to calculate what amount of profit before tax is…

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A: Split of shares  All traded on an open market organizations have a set number of offers that are…

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Q: The following is a summary of all relevant transactions of Vicario Corporation since it was…

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Q: During 2020, Masefield, Inc. had the following convertible securities outstanding: • $200,000 of 6%…

A: Earnings per share is an useful financial metric for an investor or shareholder through which an…

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Q: On January 1, 2020, Crocker Company issued 10-year, $2,000,000 face value, 6% bonds, at par. Each…

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Q: In 2020, Eklund, Inc., issued for $103 per share, 90,000 shares of $100 par value convertible…

A: Convertible preference shares are preference shares that have the opportunity to be converted into a…

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A:

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A: PLEASE LIKE THE ANSWER  a. the correct answer is = $ 4.84   Calculation OF Diluted earnings per…

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Q: On December 31, 2019, VENUS Company had 450,000 shares of ordinary shares outstanding. On September…

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Q: On December 31, 2019, LBC Co. had 2,000,000 shares of ordinary shares standing. On January 1, 2020,…

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Q: ABC Co. had 200,000 ordinary shares, 20,000 convertible preference shares, and P1,000,000 of 5%…

A:

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Q: The Fontenelle Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock,…

A: working note: income available to common share after conversion  = (net income - preferred dividend…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.