At the end of 2020, the records of Ruso Corporation reflected the following. Required a. Is this
Question:
At the end of 2020, the records of Ruso Corporation reflected the following.
Required
a. Is this a simple or a complex capital structure?
b. Compute the required EPS amounts.
Transcribed Image Text:
Common stock, no-par, authorized 250,000 shares: issued and outstanding throughout the period to December 1, 2020, 60,000 shares. A 2-for-1 stock split was issued on December 1, 2020....... $840,000 Preferred stock, 5%, $10 par, nonconvertible, cumulative, nonparticipating, shares authorized, issued, and outstanding during year, 10,000 shares 100,000 Contributed capital in excess of par, preferred stock.... 30,000 Retained earnings (no cash or property dividends during year).. 570,000 Bonds payable, 8%, issued January 1, 2020; each $1,000 bond is convertible into 60 shares of common stock after the stock split on December 1, 2020 (bonds initially sold at par). 200,000 Net income.. 72,000 Income tax rate, 25%.
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Related Book For
Intermediate Accounting Volume 2
ISBN: 9781618533135
2nd Edition
Authors: Hanlon, Hodder, Nelson, Roulstone, Dragoo
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