Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)
2nd Edition
ISBN: 9780134833118
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 20, Problem 20.10E
Computing Basic and Diluted EPS, Convertible Bonds, Options, Convertible Preferred Stock, Antidilution, Disclosures. Archangelo Company provided the following information for the current year Net income is $8,112,600 and the company is subject to a 40% tax rate. For the entire year there are 1,020,300 shares of outstanding common stock with an average market price of $32 per share.
The company had three potentially dilutive securities outstanding for the full year. There are qualified employee options to acquire 98,000 shares of common stock at an exercise price of $20 per share. The
Required
- a. Based on the information provided compute basic and diluted earnings per share for the current year Include all computations related to the application of antidilution sequencing.
- b. Prepare the required income statement disclosures beginning with net income.
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Chapter 20 Solutions
Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)
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