Shaffer Corporation issued 140, $1,000, 10% convertible bonds in 2019 at face value. Each bond is convertible into 100 shares of common stock. Shaffer's net income for 202 $3,100,800 ($4,134,400 before tax). Considering all factors except convertible bonds, average common shares outstanding for 2020 were 1,414,000. Note: In the following calculations, enter the earnings per share amounts in dollars and cents, rounded to the nearest penny. a. Compute basic EPS. b. Compute diluted EPS. Net Income Available to Weighted Avg. Common Common Stockholders Shares Outstanding Per Share 2.19 Basic EPS $ 3,100,800 ✓ 1,414,000$ 1.428,000S Diluted EPS $ 3,111,300 2.18 c. How do the answers to parts a and b change if the bonds were issued on July 1, 2020?
Shaffer Corporation issued 140, $1,000, 10% convertible bonds in 2019 at face value. Each bond is convertible into 100 shares of common stock. Shaffer's net income for 202 $3,100,800 ($4,134,400 before tax). Considering all factors except convertible bonds, average common shares outstanding for 2020 were 1,414,000. Note: In the following calculations, enter the earnings per share amounts in dollars and cents, rounded to the nearest penny. a. Compute basic EPS. b. Compute diluted EPS. Net Income Available to Weighted Avg. Common Common Stockholders Shares Outstanding Per Share 2.19 Basic EPS $ 3,100,800 ✓ 1,414,000$ 1.428,000S Diluted EPS $ 3,111,300 2.18 c. How do the answers to parts a and b change if the bonds were issued on July 1, 2020?
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 10MC
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