It is intermediate accounting question about Dilutive Securities and Earnings per Share (chp16) Throughout 2014, H had 1,870,000 shares of common stock issued and outstanding and 50,000 shares of 7 , $100 par value convertible preferred stock issued outstanding Each share of preferred stock can be converted into 5 shares of Bs common stock Hs net income for 2014 was $5,920,000 During 2014 H paid $350,000 of preferred dividends Hs income tax rate is 20 During the entire year ending 12 31 14, H had 120,000 outstanding and exercisable employee stock options that were granted to employees during 2013 Each option has an exercise price of $20 per share of H common stock During 2014, the average market price of Hs common stock was $50 per share As of 12 31 14, H had $10,000,000 of 6 , 15 year convertible bonds H issued the bonds at par during 2005 The bonds can be converted into 100,000 shares of Hs common stock As of 12 31 14, H had $10,000,000 of 10 , 40 year convertible bonds H issued the bonds at par during 1995 The bonds can be converted into 400,000 shares of Hs common stock What will H report as basic EPS for the year ended 12 31 14 ROUND TO NEAREST PENNY What will H report as diluted EPS for the year ended 12 31 14 ROUND TO NEAREST PENNY

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Posted on Sep 17, 2024

It is intermediate accounting question about Dilutive Securities and Earnings per Share (chp16)

Throughout 2014, H had 1,870,000 shares of common stock issued and outstanding and 50,000 shares of 7%, $100 par value convertible preferred stock issued outstanding. Each share of preferred stock can be converted into 5 shares of Bs common stock. Hs net income for 2014 was $5,920,000. During 2014 H paid $350,000 of preferred dividends. Hs income tax rate is 20%.

During the entire year ending 12-31-14, H had 120,000 outstanding and exercisable employee stock options that were granted to employees during 2013. Each option has an exercise price of $20 per share of H common stock. During 2014, the average market price of Hs common stock was $50 per share.
As of 12-31-14, H had $10,000,000 of 6%, 15-year convertible bonds. H issued the bonds at par during 2005. The bonds can be converted into 100,000 shares of Hs common stock.
As of 12-31-14, H had $10,000,000 of 10%, 40-year convertible bonds. H issued the bonds at par during 1995. The bonds can be converted into 400,000 shares of Hs common stock.

What will H report as basic EPS for the year ended 12-31-14? ROUND TO NEAREST PENNY.

What will H report as diluted EPS for the year ended 12-31-14? ROUND TO NEAREST PENNY.