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Table B below contains data related to Cabbage Ltd.'s capitalization at January 1, 2018. Cabbage Ltd. is a public company trading on the Toronto stock exchange. TABLE B CABBAGE LTD. CAPITAL STRUCTURE AS AT JANUARY 1, 2018 $30 Million, 10 year convertible debenture issued at par; interest at 6% per annum payable annually 31st December. Each $1,000 debenture convertible into 120 common shares. 30,000,000 Series T Preferred, no-par value, $2.50 dividend, cumulative, non-participating; 600,000 shares issued and outstanding. Each share convertible into eight common shares. 1,200,000 Common, no-par value, 8,000,000 shares issued and outstanding 42,800,000 412,000 stock options, entitling option holders to purchase 2 common shares for each option held at $1 per share; options exercisable beginning Jan. 1, 2022; 400,000 Retained Earnings 47,200,000 Additional Information : Income Tax Rate for 2018: 40% Average common share price in 2018 - $8.00. A 2017 agreement with corporate executives stipulates that they will be awarded 2,000,000 common shares if the company's share price is trading at a minimum of $8.00 at December 31, 2020. The common share price at December 31, 2018 is $9.00. The following additional information is available from the company's 2018 records. All convertible debentures, series T preferred shares and stock options remain outstanding in the financial statements as at December 31, 2018. Basic earnings per share for the year-ended December 31, 2018 has been determined at $.80 (Net Profit Attributable to Ordinary Shareholders $6,720,000; Weighted Average Ordinary Shares 8,400,000) REQUIRED: Calculate Cabbage Ltd.'s diluted EPS for the year-ended December 31, 2018. Provide detailed support of all calculations

Table B below contains data related to Cabbage Ltd.'s capitalization at January 1, 2018. Cabbage Ltd. is a public company trading on the Toronto stock exchange. TABLE B CABBAGE LTD. CAPITAL STRUCTURE AS AT JANUARY 1, 2018 $30 Million, 10 year convertible debenture issued at par; interest at 6% per annum payable annually 31st December. Each $1,000 debenture convertible into 120 common shares. 30,000,000 Series T Preferred, no-par value, $2.50 dividend, cumulative, non-participating; 600,000 shares issued and outstanding. Each share convertible into eight common shares. 1,200,000 Common, no-par value, 8,000,000 shares issued and outstanding 42,800,000 412,000 stock options, entitling option holders to purchase 2 common shares for each option held at $1 per share; options exercisable beginning Jan. 1, 2022; 400,000 Retained Earnings 47,200,000 Additional Information : Income Tax Rate for 2018: 40% Average common share price in 2018 - $8.00. A 2017 agreement with corporate executives stipulates that they will be awarded 2,000,000 common shares if the company's share price is trading at a minimum of $8.00 at December 31, 2020. The common share price at December 31, 2018 is $9.00. The following additional information is available from the company's 2018 records. All convertible debentures, series T preferred shares and stock options remain outstanding in the financial statements as at December 31, 2018. Basic earnings per share for the year-ended December 31, 2018 has been determined at $.80 (Net Profit Attributable to Ordinary Shareholders $6,720,000; Weighted Average Ordinary Shares 8,400,000) REQUIRED: Calculate Cabbage Ltd.'s diluted EPS for the year-ended December 31, 2018. Provide detailed support of all calculations

Intermediate Accounting: Reporting And Analysis
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
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 14P
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Table B below contains data related to Cabbage Ltd.'s capitalization at January 1, 2018. Cabbage Ltd. is a public company trading on the Toronto stock exchange. TABLE B CABBAGE LTD. CAPITAL STRUCTURE AS AT JANUARY 1, 2018 $30 Million, 10 year convertible debenture issued at par; interest at 6% per annum payable annually 31st December. Each $1,000 debenture convertible into 120 common shares. 30,000,000 Series T Preferred, no-par value, $2.50 dividend, cumulative, non-participating; 600,000 shares issued and outstanding. Each share convertible into eight common shares. 1,200,000 Common, no-par value, 8,000,000 shares issued and outstanding 42,800,000 412,000 stock options, entitling option holders to purchase 2 common shares for each option held at $1 per share; options exercisable beginning Jan. 1, 2022; 400,000 Retained Earnings 47,200,000 Additional Information : Income Tax Rate for 2018: 40% Average common share price in 2018 - $8.00. A 2017 agreement with corporate executives stipulates that they will be awarded 2,000,000 common shares the company's share price is trading at a minimum of $8.00 at December 31, 2020. The common share price at December 31, 2018 is $9.00. The following additional information is available from the company's 2018 records. All convertible debentures, series T preferred shares and stock options remain outstanding in the financial statements as at December 31, 2018. Basic earnings per share for the year-ended December 31, 2018 has been determined at $.80 (Net Profit Attributable to Ordinary Shareholders $6,720,000; Weighted Average Ordinary Shares 8,400,000) REQUIRED: Calculate Cabbage Ltd.'s diluted EPS for the year-ended December 31, 2018. Provide detailed support of all calculations
Transcribed Image Text:Table B below contains data related to Cabbage Ltd.'s capitalization at January 1, 2018. Cabbage Ltd. is a public company trading on the Toronto stock exchange. TABLE B CABBAGE LTD. CAPITAL STRUCTURE AS AT JANUARY 1, 2018 $30 Million, 10 year convertible debenture issued at par; interest at 6% per annum payable annually 31st December. Each $1,000 debenture convertible into 120 common shares. 30,000,000 Series T Preferred, no-par value, $2.50 dividend, cumulative, non-participating; 600,000 shares issued and outstanding. Each share convertible into eight common shares. 1,200,000 Common, no-par value, 8,000,000 shares issued and outstanding 42,800,000 412,000 stock options, entitling option holders to purchase 2 common shares for each option held at $1 per share; options exercisable beginning Jan. 1, 2022; 400,000 Retained Earnings 47,200,000 Additional Information : Income Tax Rate for 2018: 40% Average common share price in 2018 - $8.00. A 2017 agreement with corporate executives stipulates that they will be awarded 2,000,000 common shares the company's share price is trading at a minimum of $8.00 at December 31, 2020. The common share price at December 31, 2018 is $9.00. The following additional information is available from the company's 2018 records. All convertible debentures, series T preferred shares and stock options remain outstanding in the financial statements as at December 31, 2018. Basic earnings per share for the year-ended December 31, 2018 has been determined at $.80 (Net Profit Attributable to Ordinary Shareholders $6,720,000; Weighted Average Ordinary Shares 8,400,000) REQUIRED: Calculate Cabbage Ltd.'s diluted EPS for the year-ended December 31, 2018. Provide detailed support of all calculations
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