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On January 1, 2024, XYZ Company had 200,000 shares of $0.25 par common stock outstanding. On May 1, 2024, XYZ sold 30,000 shares of common

On January 1, 2024, XYZ Company had 200,000 shares of $0.25 par common stock outstanding. On May 1, 2024, XYZ sold 30,000 shares of common stock for $56 per share.
XYZ had the following preferred stock and bonds outstanding on January 1, 2024. All securities had been sold at par or face value.
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1. On January 1,2024, XYZ Company had 200,000 shares of $0.25 par common stock outstanding. On May 1,2024, XYZ sold 30,000 shares of common stock for $56 per share. XYZ had the following preferred stock and bonds outstanding on January 1, 2024. All securities had been sold at par or face value. XYZ had stock options outstanding on January 1,2024, for the purchase of 20,000 shares of common stock for $30 per share. On October 1, 2024, options were granted for the purchase of an additional 40,000 shares at $45 per share. The average market price of the common stock for 2024 was $60 per share. XYZ paid no dividends during 2024. The 2024 net income was $1,026,000. The income tax rate is 30%. INSTRUCTIONS: Compute the basic and diluted earnings per share for XYZ for 2024. 2. 1 The following additional information is available: a) On September 1,2024, MacPherson sold 56,000 additional shares of common stock. b) Net income for the year ended December 31,2024 , was $860,000. c) During 2024, MacPherson declared and paid dividends of $5 per share on its preferred stock. d) The 10% bonds are convertible into 40 shares of common stock for each $1,000 bond. e) Unexercised options to purchase 30,000 shares of common stock at $22.50 per share were outstanding at the beginning and end of 2024. f) Options to purchase 20,000 shares of common stock at $38 per share were outstanding for all of 2024. g) The average market price of MacPherson's common stock during 2024 was $36 per share. h) MacPherson's effective tax rate was 30%. INSTRUCTIONS: Compute basic EPS and diluted EPS for 2024

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