nformation concerning the capital structure of the Petrock Corporation is as follows: December 31, 20X0 20X1 Common stock 90,000 shares 90,000 shares Convertible preferred stock 10,000 shares 10,000 shares 8%, $1,000 par, convertible bonds $ 1,000,000 $ 1,000,000 During 20X1, Petrock paid dividends of $1 per share on its common stock and $2.40 per share on its preferred stock. The preferred stock is convertible into 20,000 shares of common stock. The 8% convertible bonds are convertible into 30,000 shares of common stock. The net income for the year ending December 31, 20X1, was $285,000, and the company’s income tax rate was 21%. Required: What was basic EPS for 20X1? What was diluted EPS for 20X1? (For all requirements, round your answers for "Earnings per share" to 2 decimal places.)
nformation concerning the capital structure of the Petrock Corporation is as follows: December 31, 20X0 20X1 Common stock 90,000 shares 90,000 shares Convertible preferred stock 10,000 shares 10,000 shares 8%, $1,000 par, convertible bonds $ 1,000,000 $ 1,000,000 During 20X1, Petrock paid dividends of $1 per share on its common stock and $2.40 per share on its preferred stock. The preferred stock is convertible into 20,000 shares of common stock. The 8% convertible bonds are convertible into 30,000 shares of common stock. The net income for the year ending December 31, 20X1, was $285,000, and the company’s income tax rate was 21%. Required: What was basic EPS for 20X1? What was diluted EPS for 20X1? (For all requirements, round your answers for "Earnings per share" to 2 decimal places.)
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 12RE: Given the following year-end information, compute Greenwood Corporations basic and diluted earnings...
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Information concerning the capital structure of the Petrock Corporation is as follows:
| December 31, | ||||||
| 20X0 | 20X1 | |||||
| Common stock | 90,000 | shares | 90,000 | shares | ||
| Convertible |
10,000 | shares | 10,000 | shares | ||
| 8%, $1,000 par, convertible bonds | $ | 1,000,000 | $ | 1,000,000 | ||
During 20X1, Petrock paid dividends of $1 per share on its common stock and $2.40 per share on its preferred stock. The preferred stock is convertible into 20,000 shares of common stock. The 8% convertible bonds are convertible into 30,000 shares of common stock. The net income for the year ending December 31, 20X1, was $285,000, and the company’s income tax rate was 21%.
Required:
- What was basic EPS for 20X1?
- What was diluted EPS for 20X1?
(For all requirements, round your answers for "Earnings per share" to 2 decimal places.)
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