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Intermediate Accounting @ 2 Company XYZ reported after- tax profit of 6,750,000 million in 20x5. Its capital structure included the following as of December 31,

Intermediate Accounting @ 2

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Company XYZ reported after- tax profit of 6,750,000 million in 20x5. Its capital structure included the following as of December 31, 20x5, the end of the company's fiscal year: Long-term debt: Bonds Payable, due 20x11, 11% 5,500,000 Bonds Payable, due 20x4, 11,000,000 face value, 4% interest payable annually (effective interest rate 9% ) convertible into common shares at the rate of share per $ 100.00 (balance outstanding at 20x4) 8,190,567 8,393,907 Shareholders Equity Preferred shares, 4.75 , nopar, cumulative, convertible into common shares at the rate of 2 common shares for each preferred share, shares outstanding. 175,000 Preferred shares, 2.75 no-par, cumulative, convertible into common shares at the rate of 1 common share for each preferred share, shares outstanding, 375,000 Common Shares outstanding: 1,550,00 Options to purchase common shars (options have been outstanding all year): Purchase price, $ 23.00 expire 20x11, 200,000 options Purchase price 47.00 expire 20x14, 170,000 options Each option allows the purchase of 1 share Transactions during 20x5: On 1 July, 475,000 common shares wereissued on the conversion of 237,500 of the $ 4.75 preferred shares On 1 December, 125,000 common shars were issued for cash. Additional Information: Average common share price, stable during the year, 42.00 Tax Rate 26% Quarterly dividends were declared on 31 March, 30 June, 30 September, and 31 December Calculate basic and diluted earings per share for 20x5 Weighted Avg Earnings Available Number of to Common Shares Shares EPS Basic EPS

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