Nancy Fan Company had 100,000 shares of common stock outstanding on January 1, 2024. On September 30, 2024, Nancy Fan sold 53,000 shares of common stock for cash. Nancy Fan also had 12,500 shares of convertible preferred stock outstanding throughout 2024. The preferred stock is $100 par, 6%, and is convertible into 3 shares of common for each share of preferred. Nancy Fan also had 550, 8%, convertible bonds outstanding throughout 2024. Each $1,000 bond is convertible into 30 shares of common stock. The bonds sold originally at face value. Reported net income for 2024 was $350,000 with a 40% tax rate. Common shareholders received $2.50 per share dividends after preferred dividends were paid in 2024. Required: Compute basic and diluted earnings per share for 2024. Note: Round your answers to 2 decimal places. Basic Diluted Earning per share
Nancy Fan Company had 100,000 shares of common stock outstanding on January 1, 2024. On September 30, 2024, Nancy Fan sold 53,000 shares of common stock for cash. Nancy Fan also had 12,500 shares of convertible preferred stock outstanding throughout 2024. The preferred stock is $100 par, 6%, and is convertible into 3 shares of common for each share of preferred. Nancy Fan also had 550, 8%, convertible bonds outstanding throughout 2024. Each $1,000 bond is convertible into 30 shares of common stock. The bonds sold originally at face value. Reported net income for 2024 was $350,000 with a 40% tax rate. Common shareholders received $2.50 per share dividends after preferred dividends were paid in 2024. Required: Compute basic and diluted earnings per share for 2024. Note: Round your answers to 2 decimal places. Basic Diluted Earning per share
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
Section: Chapter Questions
Problem 27E: Percy Company has 15,000 shares of common stock outstanding during all of 2019. It also has 2...
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