Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

27) Boston Co. had net income for 2021 of $500,000. The average number of shares outstanding for the period was 100,000 shares. The average number

image text in transcribed

27) Boston Co. had net income for 2021 of $500,000. The average number of shares outstanding for the period was 100,000 shares. The average number of shares under outstanding options, at an option price of $30 per share is 5,000 shares. The average market price of the common stock during the year was $40. What should Boston Co. report for diluted earnings per share for the year ended 2021? 28) ABC Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $2,000,000 of 6% convertible bonds outstanding during 2021. The preferred stock is convertible into 60,000 shares of common stock. During 2021, ABC paid dividends of $.80 per share on the common stock and $3 per share on the preferred stock. Each $1,000 bond is convertible into 40 shares of common stock. The net income for 2021 was $600,000 and the income tax rate was 20%. Diluted earnings per share for 2021 is

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

New Perspectives In Accounting Ethics

Authors: Emerald Group Publishing Limited

23rd Edition

1785608673, 9781785608674

More Books

Students also viewed these Accounting questions