On December 31, 2017. Harris Company had 70.000 shares of common stock outstanding for the entire year On April 1, 2018. Harris purchased 2,500 shares of common stock on the open market as treasury stock paying $45 per share and sold 1.KO of the treasury shares on June 1. 2018 for $17 per share. Harris issued a 15% common stock dividend on 9/2/2018. In addition, Harris bad 5.000 shares of 996, S50 par value, cumulative convertible preferred stock outstanding at December 31, 2017 Preferred dividends for 2018 amounted to $22,500. Each convertible preferred stock can be converted into two share of common stock. No convertible preferred stock had been converted by 12/31/2018 Net income for 2018 was $253.267. The income tax rate as 25% Other relevant information is as follows: 1. Outstanding at December 31, 2017, were stock options giving key personnel the option to buy 30,000 (adjusted for the stock dividends) common shares at $45. During 2018, the average market price of the common shares was $50 (adjusted for the stock dividende) on December 31, 2018. No stock options were exercised during the year. 2. $100,000,9% bonds were issued at a premium on December 20, 2017. None of the bonds had been converted by December 31, 2018. Bond interest expense of $8,500 was recorded in 2018. The premium is being amortized at S500 in 2018. Each $1,000 bond is convertible into 21 shares of common stock 3. $500,000 of 8% bonds was issued at a discount on October 10, 2017. None of the bonds had been converted by December 31, 2018 Bond interest expense of $40,900 was recorded in 2018. The discount is being amortized at $900 in 2018. Each $1,000 bond is convertible into 25 shares of common stock A) Compute the weighted average shares outstanding used in computing the basic earnings per share of 2018 for Harris Company B) Compute the basic and diluted earnings per share of 2018 for Harris Company Focus hp Dit sc & 7 8 9 O On December 31, 2017. Harris Company had 70.000 shares of common stock outstanding for the entire year On April 1, 2018. Harris purchased 2,500 shares of common stock on the open market as treasury stock paying $45 per share and sold 1.KO of the treasury shares on June 1. 2018 for $17 per share. Harris issued a 15% common stock dividend on 9/2/2018. In addition, Harris bad 5.000 shares of 996, S50 par value, cumulative convertible preferred stock outstanding at December 31, 2017 Preferred dividends for 2018 amounted to $22,500. Each convertible preferred stock can be converted into two share of common stock. No convertible preferred stock had been converted by 12/31/2018 Net income for 2018 was $253.267. The income tax rate as 25% Other relevant information is as follows: 1. Outstanding at December 31, 2017, were stock options giving key personnel the option to buy 30,000 (adjusted for the stock dividends) common shares at $45. During 2018, the average market price of the common shares was $50 (adjusted for the stock dividende) on December 31, 2018. No stock options were exercised during the year. 2. $100,000,9% bonds were issued at a premium on December 20, 2017. None of the bonds had been converted by December 31, 2018. Bond interest expense of $8,500 was recorded in 2018. The premium is being amortized at S500 in 2018. Each $1,000 bond is convertible into 21 shares of common stock 3. $500,000 of 8% bonds was issued at a discount on October 10, 2017. None of the bonds had been converted by December 31, 2018 Bond interest expense of $40,900 was recorded in 2018. The discount is being amortized at $900 in 2018. Each $1,000 bond is convertible into 25 shares of common stock A) Compute the weighted average shares outstanding used in computing the basic earnings per share of 2018 for Harris Company B) Compute the basic and diluted earnings per share of 2018 for Harris Company Focus hp Dit sc & 7 8 9 O
