Multiple Choice Question 106

On January 2, 2018, Crane Company issued at par $1900000 of 6% convertible bonds. Each $1000 bond is convertible into 10 shares of common stock. No bonds were converted during 2018. Crane had 190000 shares of common stock outstanding during 2018. Cranes 2018 net income was $890000 and the income tax rate was 25%. Cranes diluted earnings per share for 2018 would be (rounded to the nearest penny):

$4.68.

$4.67.

$5.13.

$4.85.

Multiple Choice Question 73

Sunland Company issued 10100 shares of its $10 par value common stock having a fair value of $30 per share and 14000 shares of its $10 par value preferred stock having a fair value of $25 per share for a lump sum of $510000. How much of the proceeds would be allocated to the common stock?

$303000

$236646

$273354

$329250