Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Blossom Inc. has 1.10 million common shares outstanding as at January 1, 2020. On June 30, 2020,4% convertible bonds were converted into 105,000 additional shares.
Blossom Inc. has 1.10 million common shares outstanding as at January 1, 2020. On June 30, 2020,4% convertible bonds were converted into 105,000 additional shares. Up to that point, the bonds had paid interest of $235,000 after tax. Net income for the year was $1,299,218. During the year, the company issued the following: 1. June 30: 12,250 call options giving holders the right to purchase shares of the company for $30 2. Sept. 30: 17,250 put options allowing holders to sell shares of the company for $25 On February 1, Blossom also purchased in the open market 12,250 call options on its own shares, allowing it to purchase its own shares for $27. Assume the average market price for the shares during the year was $35. (a) Calculate the required EPS numbers under IFRS. For simplicity, ignore the impact that would result from the convertible debt being a hybrid security. (Round answers to 2 decimal places, e.g. 15.25.) Basic EPS $ Diluted EPS $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started