GEN COMBO LOOSELEAF INTERMEDIATE ACCOUNTING; CONNECT ACCESS CARD
9th Edition
ISBN: 9781260089042
Author: J. David Spiceland
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 19, Problem 19.16P
EPS; convertible bonds; treasury shares
• LO19–4 through LO19–6, LO19–9
At December 31, 2018, the financial statements of Hollingsworth Industries included the following:
| Net income for 2018 | $560 million |
| Bonds payable, 10%, convertible into 36 million shares of common stock | $300 million |
| Common stock: | |
| Shares outstanding on January 1 | 400 million |
| Treasury shares purchased for cash on September 1 | 30 million |
Additional data:
The bonds payable were issued at par in 2016. The tax rate for 2018 was 40%.
Required:
Compute basic and diluted EPS for the year ended December 31, 2018.
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Chapter 19 Solutions
GEN COMBO LOOSELEAF INTERMEDIATE ACCOUNTING; CONNECT ACCESS CARD
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