Colson Corp. had $500,000 net income in 20X1. On January 1, 20X1 there were 200,000 ordinary...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Colson Corp. had $500,000 net income in 20X1. On January 1, 20X1 there were 200,000 ordinary shares outstanding. On April 1, 20,000 shares were issued; and on September 1; Colson Corp. repurchased and retired 30,000 shares. 30,000 outstanding options were granted prior to Jan 1, 20X1 that allows the option holders to buy 30,000 ordinary shares at $40. The market price of the ordinary shares averaged $50 during 20X1. On Jan 1, 20X1, there were 40,000 shares of cumulative preference shares outstanding. The preference is $100 par, pays $3.50 annual dividend for each share. Colson issued $2,000,000 (with 8% of the par value for the interest) convertible bonds at face value in 20X0. Each $1,000 bond is convertible into 30 ordinary shares. The convertible bonds were outstanding at the end of the year of 20X1. The tax rate is 40%. Colson Corp. did not declare dividends for the year 20X1. Required: Compute diluted earnings per share for 20X1. Complete the schedule and show all computations. Colson Corp. had $500,000 net income in 20X1. On January 1, 20X1 there were 200,000 ordinary shares outstanding. On April 1, 20,000 shares were issued; and on September 1; Colson Corp. repurchased and retired 30,000 shares. 30,000 outstanding options were granted prior to Jan 1, 20X1 that allows the option holders to buy 30,000 ordinary shares at $40. The market price of the ordinary shares averaged $50 during 20X1. On Jan 1, 20X1, there were 40,000 shares of cumulative preference shares outstanding. The preference is $100 par, pays $3.50 annual dividend for each share. Colson issued $2,000,000 (with 8% of the par value for the interest) convertible bonds at face value in 20X0. Each $1,000 bond is convertible into 30 ordinary shares. The convertible bonds were outstanding at the end of the year of 20X1. The tax rate is 40%. Colson Corp. did not declare dividends for the year 20X1. Required: Compute diluted earnings per share for 20X1. Complete the schedule and show all computations.
Expert Answer:
Answer rating: 100% (QA)
Weighted Average Number of Ordinary Shares Outstanding Period Ordinary Shares Outsta... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
Students also viewed these accounting questions
-
The sales performance of the Luggage Department in a Sporting Goods Store last Fall was: August September October November December January $70,000 $90,000 $120,000 $150,000 $160,000 $125,000 Total...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
The following data represent the prices in dollars of general admission tickets for the last 18 concerts at one venue. Use the given data to determine the stems for this stem-and-leaf plot. $50 $61...
-
The 2012 Data Breach Investigations Report (DBIR) is a recounting of the many facets of corporate data theft. In this document, the Verizon RISK Team reported that there were 855 data breaches in...
-
A 124-kg balloon carrying a 22-kg basket is descending with a constant downward velocity of 20.0 m/s. A 1.0-kg stone is thrown from the basket with an initial velocity of 15.0 m/s perpendicular to...
-
Data for Sanborn Corporation in 20x8 and 20x7 follow. These data should be used in conjunction with the data in P 1. Selected balances at the end of 20x6 were accounts receivable (net), $206,800;...
-
Nieland Industries had one patent recorded on its books as of January 1, 2012. This patent had a book value of $288,000 and a remaining useful life of 8 years. During 2012, Nieland incurred research...
-
\f
-
Equipment with an 8-year useful life was purchased on March 1, 2015, for $150,000. The equipment has been depreciated using the straight-line method with an estimated residual value of $20,000. It...
-
Determine the internal forces in each member of the below truss by using the Method of Joints. First find the external reaction forces at the supports at points A and D add to the drawing below....
-
Respond to the scenario below with your thoughts, ideas, and comments. Be substantive and clear, and use research to reinforce your ideas. You and Shawn met yesterday with the members of a...
-
In 2020, Modanisa incurs costs of $1,200,000 to produce 48000 units. Of these 48000 units, 40000 units are good units & 8000 are spoiled units.2000units are normal spoilage. what is the loss arise...
-
Ex. 02: Workbook 10-8 Able Energy, Inc. is a company listed on NASDAQ (symbol: ABLE). A trader sold 100 shares of this company on May 10, 2004 at 15:52:59 at a price of $2.66 per share. All the...
-
Calculate the interest to be capitalised for the construction of Fleur Boat. Prepare the journal entries related to the interest capitalisation for the year 2016.(7 Marks) (b) Calculate the...
-
The units-of-production method provides the closest matching of a long-lived asset's depreciation expense to the revenues generated by using that asset when the O amount of production is the highest...
-
Determine the optimal use of Applichem's plant capacity using the Solver in Excel.
-
Which amortization method is required for intangibles? Are there any exceptions?
-
Manson Incorporated reported the following current asset on its December 31, 2006 balance sheet: Temporary investment in available-for-sale securities (at cost) ...... $63,475 Less: Allowance for...
-
Situation Scientific Software sells software to the oil industry. Its policy is to recognize revenue when it signs a licensing agreement for the software. It uses a 13-year amortization period for...
-
(Average compounding rate) WindyRoad is an investment company which has two mutual funds. The WindyRoad Dull Fund invests in boring corporate bonds, and its Lively Fund invests in high-risk,...
-
What are the differences between merchandisers and manufacturers?(Appendix)
-
(Appendix) Compute ending inventory and cost of goods sold under a periodic inventory system. - Under a periodic inventory system, the inventory costing methods are applied as if all purchases during...
Study smarter with the SolutionInn App