Question
1) Blue Co. had 120,000 shares of stock outstanding on January 1, 2021. On May 1, 2021, Blue issued 60,000 shares. On July 1, Blue
1) Blue Co. had 120,000 shares of stock outstanding on January 1, 2021. On May 1, 2021, Blue issued 60,000 shares. On July 1, Blue purchased 10,000 treasury shares, which were reissued on October 1. Compute Blues weighted-average number of shares outstanding for 2021.
2) Boston Corp. had 200,000 shares of common stock outstanding on January 1, 2021. On May 1, Boston issued 40,000 shares. Compute the weighted-average number of shares outstanding if the 40,000 shares were issued in a 10% stock dividend.
3) Albany Corp. earned net income of $500,000 in 2021 and had 100,000 shares of common stock outstanding throughout the year. Also outstanding all year was $800,000 of 8% bonds, which are convertible into 20,000 shares of common. Albanys tax rate is 30%. Compute Albanys 2021 diluted earnings per share.
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