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Bramble Corporation had net income of $92,000 for the fiscal year ending December 31, 2021. The company pays 15% income tax. For fiscal 2021, the
Bramble Corporation had net income of $92,000 for the fiscal year ending December 31, 2021. The company pays 15% income tax. For fiscal 2021, the weighted average number of common shares was 23,000. Throughout fiscal 2021 Bramble had a $510,000, 5% bond that was convertible to 11,000 common shares. On September 1, 2021, the company sold another new $1,035,000, 8% bond that was convertible to 21,000 common shares. Calculate Bramble's basic earnings per share. (Round answer to 2 decimal places, e.g. 15.25.) Basic EPS $ e Textbook and Media Calculate the after-tax interest paid on the 5% bonds. After-tax interest on 5% bonds e Textbook and Media Determine an incremental per share effect for 5% bonds. (Round earnings per share to 3 decimal places, e.g. 15.257.) Incremental Numerator Effect Incremental Denominator Effect Potentially dilutive security EPS 5% Bonds e Textbook and Media Calculate the after-tax interest paid on the 8% bonds. (Round answer to 0 decimal places, e.g. 5,125.) After-tax interest on 8% bonds e Textbook and Media Determine an incremental per share effect for 8% bonds. (Round earnings per share to 3 decimal places, e.g. 15.257.) Incremental Numerator Effect Incremental Denominator Effect Potentially dilutive security EPS 8% Bonds e Textbook and Media Rank the potentially dilutive securities from most dilutive to least dilutive. 5% bonds 8% bonds Toythook and Modi Calculate Bramble's diluted earnings per share. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately). (Round calculations of EPS to 3 decimal places, e.g. $3.545 and provide final answer to 2 decimal places, e.g. 15.25.) Numerator Denominator EPS Basic EPS Sub Total Diluted EPS e Textbook and Media
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