146.At the beginning of the year, a firm issued (1) $100,000 of 5% bonds (at face value) convertible into a total of 2,000 of the firm's common shares, and (2) $1,000, $9 cumulative preferred shares convertible into a total of 1,000 of the firm's common shares. The tax rate is 40%. There were no conversions during the year; the firm earned $100,000, and had 20,000 common shares outstanding the entire year. Compute basic EPS and diluted EPS.

142.You are given the following information about KER Ltd.:

30,000 common shares outstanding on January 1, 2012

5,000 preferred shares, no-par, $1.30 (cumulative, nonconvertible) outstanding on January 1 2,000 shares sold on March 1, 2012

1,000 shares sold on September 1, 2012

2 for 1 Stock split recorded on October 1, 2012

Net Income for the year $340,000

Required:

Calculated the basic EPS.

143.What does diluted EPS take into account?

144.What does the term anti-dilution mean?

145.What is diluted EPS?

140.You are given the following information about DWWR Ltd.:

130,000 common shares outstanding on January 1, 2012 12,000 shares sold on March 1, 2012

11,000 shares sold on September 1, 2012

4 for 1 Stock split recorded on October 1, 2012

Net Income for the year $2,340,000 Required:

Calculated the basic EPS.