Question
CarlaCorporation had a net income for the current year ending December 31, 2021 of $1,204,500. Throughout 2021 the following items were outstanding: 413,000common shares18,500Class A
CarlaCorporation had a net income for the current year ending December 31, 2021 of $1,204,500. Throughout 2021 the following items were outstanding:
413,000common shares18,500Class A $3cumulative preferred shares that were convertible to common shares at a rate of 1:149,500Class B $4non-cumulative preferred shares that were convertible at a rate of one common share for every two preferred shares.$551,000, 8% bonds that were convertible to14,500common shares$303,000, 10% bonds convertible to9,000common shares
No dividends were declared or paid in 2021.Carla's tax rate is 25%.
a) Determine an incremental per share effect for Class A preferred shares.
incremental numerator effect Denominator effect. EPS
Class A preferred. .............................................. ........................................ .................
shares.
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