BEPS & DEPS?

Chon Corporation has the following information regarding its capital structure for the current year: Common stock, 360,000 shares issued and outstanding as of the start of the year. On July 1, an additional 200,000 shares were issued which was followed by a 50% stock dividend declaration on July 8^th. 240,000 Additional shares were sold on September 1, While on October 1^st, the company reacquired 60,000 shares in the open market to be held as treasury shares. The company has 8% $100 par value cumulative preferred stock issued at par. It is reported on the balance sheet at $200,000. In addition, there is 6% $100 par value convertible cumulative preferred stock issued at $105 and convertible into a total of 20,000 shares of common stock. It has a value of $400,000 reported on the balance sheet. There is also APIC in the amount of $20,000. The company also has convertible bonds outstanding that carry a 6% interest rate. The face amount of the bonds is $500,000 and they are convertible into 25,000 shares of common stock. Additional information: All preferred stock dividends are one year arrears. Stock options for 120,000 shares are outstanding at an exercise price of $25. The net income for the year is $640,000 and the company is subject to a 40% tax rate. No options were exercised and no actual conversions occurred during the year. The stock's year end price was $36 while it averaged $32 during the year. Chon Corporation has the following information regarding its capital structure for the current year: Common stock, 360,000 shares issued and outstanding as of the start of the year. On July 1, an additional 200,000 shares were issued which was followed by a 50% stock dividend declaration on July 8^th. 240,000 Additional shares were sold on September 1, While on October 1^st, the company reacquired 60,000 shares in the open market to be held as treasury shares. The company has 8% $100 par value cumulative preferred stock issued at par. It is reported on the balance sheet at $200,000. In addition, there is 6% $100 par value convertible cumulative preferred stock issued at $105 and convertible into a total of 20,000 shares of common stock. It has a value of $400,000 reported on the balance sheet. There is also APIC in the amount of $20,000. The company also has convertible bonds outstanding that carry a 6% interest rate. The face amount of the bonds is $500,000 and they are convertible into 25,000 shares of common stock. Additional information: All preferred stock dividends are one year arrears. Stock options for 120,000 shares are outstanding at an exercise price of $25. The net income for the year is $640,000 and the company is subject to a 40% tax rate. No options were exercised and no actual conversions occurred during the year. The stock's year end price was $36 while it averaged $32 during the year