INTERMEDIATE ACCOUNTING VOL 1&2 CONNECT
10th Edition
ISBN: 9781260932836
Author: SPICELAND
Publisher: MCGRAW-HILL LEARNING SOLN.(CC)
expand_more
expand_more
format_list_bulleted
Question
Chapter 19, Problem 19.15BE
To determine
Earnings per share (EPS): The amount of earnings made available to each common share is referred to as earnings per share. Dilutive securities like convertible bonds, convertible preferred stock, and stock options, reduce the EPS by increasing the common shares.
Use the following formula to determine EPS:
To determine: The basic EPS and diluted EPS of Corporation A for the year
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Sh.27.
On January 1, 2023, Bre-x Inc. had 600,000 common shares outstanding. On March 1, the corporation issued 60,000 new common shares to raise additional capital. On July 1, the corporation declared and distributed a 12% stock dividend on its common shares. On October 1, the corporation repurchased on the market 20,000 of its own outstanding common shares to make them available for issuances related to its key executives' outstanding stock options.
Required:
a. Calculate the weighted average number of shares outstanding as at December 31, 2023. Round to the nearest share.
b. Assume that Bre-X Inc. had a 1-for-10 reverse stock split instead of a 10% stock dividend on July 1, 2023. Calculate the weighted average number of shares outstanding as at December 31, 2023. Round to the nearest share.
O Dr. Preferred Shares $137,500 Dr. Retained earnings $82,500; Cr. Cash $220,000 Question 12 What is a "warrant"? O A contract in which one party commits up front to buy or sell something at a defined price at a defined future date. A contract in which one party commits up front to buy or sell commonly traded items at a defined price and maturity date. A contact that gives the right, but not the obligation, to buy a share at a specified price over a specified period of time. A contract in which two parties agree to exchange cash flows (e.g. interest cash flows). Question 13 1 3019 as a signing bonus. The options vest o
Exercise 19-19 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options; convertible bonds [LO19-5,19-6, 19-7, 19-8, 19-9] On December 31, 2023, Berclair Incorporated had 480 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2024, Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2024. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2024, was $750 million. The income tax rate is 25%. Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2019. The options are exercisable as of September 13, 2023, for 30 million common shares at an exercise price of $56 per share. During 2024, the market price of the common shares averaged $70 per share. In 2020, $50.0 million of 8% bonds,…
Chapter 19 Solutions
INTERMEDIATE ACCOUNTING VOL 1&2 CONNECT
Ch. 19 - Prob. 19.1QCh. 19 - Prob. 19.2QCh. 19 - The Tax Code differentiates between qualified...Ch. 19 - Stock option (and other share-based) plans often...Ch. 19 - What is a simple capital structure? How is EPS...Ch. 19 - Prob. 19.6QCh. 19 - Blake Distributors had 100,000 common shares...Ch. 19 - Why are preferred dividends deducted from net...Ch. 19 - Prob. 19.9QCh. 19 - The treasury stock method is used to incorporate...
Ch. 19 - The potentially dilutive effect of convertible...Ch. 19 - How is the potentially dilutive effect of...Ch. 19 - Prob. 19.13QCh. 19 - If stock options and restricted stock are...Ch. 19 - Wiseman Electronics has an agreement with certain...Ch. 19 - Prob. 19.16QCh. 19 - When the income statement includes discontinued...Ch. 19 - Prob. 19.18QCh. 19 - Prob. 19.19QCh. 19 - (Based on Appendix B) LTV Corporation grants SARs...Ch. 19 - Prob. 19.1BECh. 19 - Prob. 19.2BECh. 19 - Prob. 19.14BECh. 19 - Prob. 19.15BECh. 19 - Prob. 19.10ECh. 19 - EPS; concepts; terminology LO195 through LO1913...Ch. 19 - FASB codification research LO192 The FASB...Ch. 19 - Prob. 19.28ECh. 19 - Communication Case 1911 Dilution LO199 I thought...Ch. 19 - Prob. 19.12DMP
Knowledge Booster
Similar questions
- QUESTION 7 At December 31, 2019, Bixby Corporation had 30,000 shares outstanding of $10 par value common stock. The shares were originally issued for $26 per share. On January 1, 2020, Bixby split its common stock 4 for 1 with a corresponding reduction in the stock’s par value. The market price of the stock just before the split was $60 per share. After the split, the balance of the common stock account is: A. $ 900,000 B. $ 780,000 C. $1,800,000 D. $ 300,000arrow_forward7.] DIY Corporation was planning to used its treasury shares and needs your financial advice on these matters: 7.1Treasury shares were acquired by the corporation at P 200.00 per share.. May the corporation sell them at only P 150.00, when the par value of each share is P 100.00? Explain. 7.2 DIY Corporation plans to used its treasury shares to vote in the meetings and received dividends. Can the corporation be allowed to do these actions?arrow_forwardLO 14.2 Fortuna Company is authorized to issue 1,000,000 shares of $1 par value common stock. In its first year, the company has the following transactions: Jan. 31 Issued 40,000 shares at $10 share Jun. 10 Issued 100,000 shares in exchange for land with a clearly determined value of $850,000 Aug. 3 Purchased 10,000 shares of treasury stock at $9 per share Calculate how many shares of stock are outstanding at August 3.arrow_forward
- Exercise 19-19 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options; convertible bonds [LO19-5,19-6, 19-7, 19-8, 19-9] On December 31, 2020, Berclair Inc. had 280 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2021, was $250 million. The income tax rate is 25%. Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2016. The options are exercisable as of September 13, 2020, for 30 million common shares at an exercise price of $56 per share. During 2021, the market price of the common shares averaged $70 per share. In 2017, $50.0 million of 8% bonds, convertible…arrow_forwardExercise 19-24 (Algo) New shares; contingently issuable shares [LO19-6,19-12] During 2024, its first year of operations, Kevin Berry Industries entered into the following transactions relating to shareholders’ equity. The corporation was authorized to issue 100 million common shares, $1 par per share. January 2 Issued 75 million common shares for cash. January 2 Entered an agreement with the company president to issue up to 2 million additional shares of common stock in 2025 based on the earnings of Berry in 2025. If net income exceeds $120 million, the president will receive 1 million shares; 2 million shares if net income exceeds $130 million. March 31 Issued 4 million shares in exchange for plant facilities. Net income for 2024 was $125 million. Required: Compute basic and diluted earnings per share for the year ended December 31, 2024. Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).arrow_forward10 The XL Co. issued 5,000 shares of P50 par preference shares 1,000 detachable warrants at P400,000. The warrants shall enable the holder to purchase 1,000 ordinary shares of P10 par at P25 per share. Immediately after the issuance of the share, the warrants are selling at P20 per share and the market value of the preference without the warrants is P60. The amount to be assigned to the share warrants should be: Group of answer choices 25,000 None 20,000 30,000arrow_forward
- (Note: This is a variation of E 19–17 modified to include convertible bonds).On December 31, 2017, Berclair Inc. had 200 million shares of common stock and 3 million shares of9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2018, Berclair purchased24 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1,2018. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2018, was$150 million. The income tax rate is 40%.Also outstanding at December 31 were incentive stock options granted to key executives on September 13,2013. The options are exercisable as of September 13, 2017, for 30 million common shares at an exercise price of$56 per share. During 2018, the market price of the common shares averaged $70 per share.In 2014, $62.5 million of 8% bonds, convertible into 6 million common shares, were issued at face value.Required:Compute Berclair’s basic and diluted…arrow_forwardQUESTION 3.5 Tusker Corporation is considering a 3- for- 2 share split. It currently has the shareholder’s equity position shown. The current share price is R120 per share. The most recent periods earnings available for ordinary shares are included in retained earnings. Preference shares R1 000 000Ordinary shares (100 000 shares at R3 R300 000per shareShare premium R1 700 000Retained earnings R10 000 000Total shareholders’ equity R13 000 000 Explain the differences between share splits and dividends.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningCorporate Financial AccountingAccountingISBN:9781305653535Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Corporate Financial Accounting
Accounting
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning