Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can anybody please solve this as soon as possible? Question 4: On January 1, 2022, Madison Corp. had 200,000 common shares outstanding. On April 1,

image text in transcribed

image text in transcribed

can anybody please solve this as soon as possible?

Question 4: On January 1, 2022, Madison Corp. had 200,000 common shares outstanding. On April 1, 2022, 20,000 common shares were issued and on September 1, 2022, Madison bought back 30,000 treasury shares. The market price of the common shares averaged $ 50 during 2022. The corporation's income tax rate is 40%. A During 2022, there were 30,000 call options to buy common shares at $40 a share outstanding; and there were 20,000, $ 7, no par value, cumulative and convertible preferred. shares outstanding. Each preferred share is convertible into three common shares. During 2021, the corporation had issued $2,000,000 of 8% convertible bonds at face value. Each $1,000 bond is convertible into 20 common shares. The corporation reported $ 750,000 net income for calendar 2022. Instructions Calculate diluted earnings per share for 2022. Complete the schedule below and show all calculations. Security Net Adjust Income Adjusted -ment Net Income Shares Adjust Adjusted -ment Shares EPS

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

Step: 3

blur-text-image

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

Auditing Organizational Communication A Handbook Of Research Theory And Practice

Authors: Owen Hargie, Dennis Tourish

2nd Edition

0415414466, 978-0415414463

More Books

Students also viewed these Accounting questions