Charles Austin of the controllers office of Grouper Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2018. Austin has compiled the information listed below.
1. | | The company is authorized to issue 8,120,000 shares of $10 par value common stock. As of December 31, 2017, 2,030,000 shares had been issued and were outstanding. |
2. | | The per share market prices of the common stock on selected dates were as follows. |
Shi uly 1, 2017 $20.00 Apnl 1, 2010 25.00 2018 11.00 August November 2010 9.00 December 1, 2016 10.00 3. A total of 722,400 shares of an authonzed 1,092,000 shares of oonvertible preferred stock had been issued on July 1, 2017. The stock wi issued at its par value of $25,00, and it has a cumulative dividend of $3 per share. The stock is convertible into common stock at the rate of one share of convertible preferred for one share o The rate of conversion is to be automatically djusted for stock splits and stock divid vidends are paid quart 0, December 3, ends, D rly on Septembe March and June 30 4. Group Corpor subject to a 40 incom e tax rate 5. The after-ta rlar Da The following specific activities took place durinp 2018. 1. January 1-A 55% common stock divi end was sued. The dividend had been declared on December stockholders of record on December 29, 2017 2017, to a -A total of 366,000 shares of the $3 convertib preferred stock was converted into commo cock, The compa ssued new common stock and retired the prefemed stock. This was the only conversion of the preferred stock during 2018 y 1-A, 2-for- plit of the common stock became effective o s date. The board of directors had authorized the spl it on June 1 A total of 30 400 sh d to acqu factory building aSAd on the open markat at $9.0D par shara. These shares w tr ba d as treasury stock and wena still in the sury as of December 31, 2018. 5. Novambar -A trtal of 24,00D shares common strck ware p Common stock cash dividends-Ca ends to common stocklnolders were declared and paid a ollows. pril i 5-$0.20 per 5-$0.20 per share Octobe refemed stock cash dividends-Cash dividends to prefemed stockholders were declared and paid as scheduled a. $2,500.) of shi pute ba ded December 3 2018. (Round to 0 decimal places, Number of shares to compute basic eamings per share (b) Determine the number of shares used to compute diluted eamings per share for the year ended December 31, 2018. (Round answer to a decimal places, e $1,500. Number of shares to compute d uted earnings per share null ome to be used as tha c) Compute the adjusted nat re b eamings par share calculation for the year anded December 3 d net income Shi uly 1, 2017 $20.00 Apnl 1, 2010 25.00 2018 11.00 August November 2010 9.00 December 1, 2016 10.00 3. A total of 722,400 shares of an authonzed 1,092,000 shares of oonvertible preferred stock had been issued on July 1, 2017. The stock wi issued at its par value of $25,00, and it has a cumulative dividend of $3 per share. The stock is convertible into common stock at the rate of one share of convertible preferred for one share o The rate of conversion is to be automatically djusted for stock splits and stock divid vidends are paid quart 0, December 3, ends, D rly on Septembe March and June 30 4. Group Corpor subject to a 40 incom e tax rate 5. The after-ta rlar Da The following specific activities took place durinp 2018. 1. January 1-A 55% common stock divi end was sued. The dividend had been declared on December stockholders of record on December 29, 2017 2017, to a -A total of 366,000 shares of the $3 convertib preferred stock was converted into commo cock, The compa ssued new common stock and retired the prefemed stock. This was the only conversion of the preferred stock during 2018 y 1-A, 2-for- plit of the common stock became effective o s date. The board of directors had authorized the spl it on June 1 A total of 30 400 sh d to acqu factory building aSAd on the open markat at $9.0D par shara. These shares w tr ba d as treasury stock and wena still in the sury as of December 31, 2018. 5. Novambar -A trtal of 24,00D shares common strck ware p Common stock cash dividends-Ca ends to common stocklnolders were declared and paid a ollows. pril i 5-$0.20 per 5-$0.20 per share Octobe refemed stock cash dividends-Cash dividends to prefemed stockholders were declared and paid as scheduled a. $2,500.) of shi pute ba ded December 3 2018. (Round to 0 decimal places, Number of shares to compute basic eamings per share (b) Determine the number of shares used to compute diluted eamings per share for the year ended December 31, 2018. (Round answer to a decimal places, e $1,500. Number of shares to compute d uted earnings per share null ome to be used as tha c) Compute the adjusted nat re b eamings par share calculation for the year anded December 3 d net income