The net income of F.F. Inc., amounted to $1,920.000 for the current year. a. Compute the amount of earnings per share assuming that the shares of capital stock outstanding throughout the year consisted of: 400,000 shares of $1 par value common stock and no preferred stock. 100,000 shares of 8 percent, $100 par value preferred stock and 300,000 shares of $5 par value common stock. b. Is the earnings per share figure computed inn part a (2) considered to be basic or diluted? Explain
The net income of F.F. Inc., amounted to $1,920.000 for the current year. a. Compute the amount of earnings per share assuming that the shares of capital stock outstanding throughout the year consisted of: 400,000 shares of $1 par value common stock and no preferred stock. 100,000 shares of 8 percent, $100 par value preferred stock and 300,000 shares of $5 par value common stock. b. Is the earnings per share figure computed inn part a (2) considered to be basic or diluted? Explain
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter13: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 3PA: The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the...
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The net income of F.F. Inc., amounted to $1,920.000 for the current year.
a. Compute the amount of earnings per share assuming that the shares of capital stock outstanding throughout the year consisted of:
- 400,000 shares of $1 par value common stock and no
preferred stock . - 100,000 shares of 8 percent, $100 par value preferred stock and 300,000 shares of $5 par value common stock.
b. Is the earnings per share figure computed inn part a (2) considered to be basic or diluted? Explain
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