Question
On April 1, 2021, ABC Co. issued at par $10,000 of 6% bonds convertible in total into 1,000 shares of ABC's common stock. No bonds
On April 1, 2021, ABC Co. issued at par $10,000 of 6% bonds convertible in total into 1,000 shares of ABC's common stock. No bonds were converted during 2021. Throughout 2021, ABC had 1,000 shares of common stock outstanding. ABC's 2021 net income was $4,500, and its income tax rate is 20%. ABC's diluted earnings per share for 2021 would be (rounded to the nearest penny)?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Intermediate Accounting principles and analysis
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
2nd Edition
471737933, 978-0471737933
