Question
In 2019, ABC Company has $100,000 of Net Income, $10,000 of Preferred Stock dividends, and 10,000 common shares outstanding all year. On July 1st, 2019,
In 2019, ABC Company has $100,000 of Net Income, $10,000 of Preferred Stock dividends, and 10,000 common shares outstanding all year. On July 1st, 2019, a 5% $1,000,000 convertible bond was issued. The bond is discounted at $900,000 and will be convertible into 25,000 common shares. The tax rate is 21%.
What would the formula for diluted earnings per share be? and how would you solve it?
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Intermediate Accounting 2014 FASB Update
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
15th edition
978-1118938782, 111893878X, 978-1118985311, 1118985311, 978-1118562185, 1118562186, 978-1118147290
