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1 On January 1st 2015, The Bond James Bond (BJB) Company purhcased all of the voting stock of the Spectre Company at book value
1 On January 1st 2015, The Bond James Bond (BJB) Company purhcased all of the voting stock of the Spectre Company at book value 2 At the beginning of 2022, Spectre Company issued 500 shares of 6% cumulative preferred stock 3 On December 31st 2022 BJB and Spectre had the following (note: there were no transactions between Spectre and BJB in 2022) 4 5 6 7 BJB Spectre 8 Commonstock $1 par 50000 5000 9 additional pic common 100000 5000 10 preferred stock $100 par 0 50,000 11 retained earnings 800000 20000 12 13 14 Part 1: In 2022 (no transactions between the 2 companies) 15 BJB Spectre 16 17 Sales expenses net income 100000 30000 40000 12000 60000 18000 18 19 20 Required: Calculate BJB's earnings per share (EPS) for 2022 21 22 Part 2: In 2022 (no transactions between the 2 companies) 23 BJB Spectre 24 sales expenses net income 100000 40000 30000 12000 60000 18000 Required: the preferred stock is convertible where each share of preferred stock can be converted into 2 shares of Spectre Common stock. Calculate BJB's earning per share (EPS) for 2022 30
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