Question
During 2022, a company reported net income of $100,000. The company began the year with 5,000 shares of common stock with a par value of
During 2022, a company reported net income of $100,000. The company began the year with 5,000 shares of common stock with a par value of $1/share. The company repurchased 500 shares on April 1 for $5/share and resold 200 of those shares on September 1 for $7/share. The company had a loan outstanding for the entire year that is convertible into 300 shares of common stock. The loan has a $1,000,000 face value and an interest rate of 4%. The income tax rate is 25%.
- What is basic EPS for the year 2022? Round to two decimals.
- What is diluted EPS for the year 2022? Round to two decimals.
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Auditing A Risk Based Approach to Conducting a Quality Audit
Authors: Karla Johnstone, Audrey Gramling, Larry E. Rittenberg
10th edition
978-1305080577
