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Information concerning the capital and long-term debt of Zipox Company is as follows. There were no changes in the shares and debt outstanding during 2019:
Information concerning the capital and long-term debt of Zipox Company is as follows. There were no changes in the shares and debt outstanding during 2019: Common Stock outstanding. ..90,000 shares Convertible, Noncumulative Preferred Stock outstanding........10,000 shares 8% Convertible Bonds. ...$1,000,000 During 2019, Zipox declared and paid cash dividends of $1.00 per share of common stock and $2.40 per share of preferred stock. The preferred stock is convertible into 20,000 shares of common stock. The 8% convertible bonds can be converted into 30,000 shares of common stock. The net income for the year ended December 31, 2019 was $250,000. Assume an income tax rate of 40%. What amount should Zipox report as basic and diluted earnings per share for 2019 Be sure to include supporting computations for possibility of partial credit
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