Question
Information from the financial statements of Ames Fabricators, Incorporated included the following: December 31 2024 2023 Common shares 100,000 100,000 Convertible preferred shares (convertible into
Information from the financial statements of Ames Fabricators, Incorporated included the following:
| December 31 | ||
| 2024 | 2023 | |
|---|---|---|
| Common shares | 100,000 | 100,000 |
| Convertible preferred shares (convertible into 32,000 shares of common) | 12,000 | 12,000 |
| 8% convertible bonds (convertible into 30,000 shares of common) | $ 1,000,000 | $ 1,000,000 |
Amess net income for the year ended December 31, 2024, is $500,000. The income tax rate is 25%. Ames paid dividends of $5 per share on its preferred stock during 2024.
Required:
Compute basic and diluted earnings per share for the year ended December 31, 2024.
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Auditing And Assurance Services An Integrated Approach
Authors: Alvin Arens
13th Edition
0136084737, 9780136084730
