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On January 2, 2020, Delila Inc. issued at par $ 10,000 6% bonds convertible into 1,000 of their common shares. No bonds were converted during
On January 2, 2020, Delila Inc. issued at par $ 10,000 6% bonds convertible into 1,000 of their common shares. No bonds were converted during 2020. Throughout 2020, Delila had 1,000 common shares outstanding (no preferred shares issued). Delilas 2020 net income was $ 6,000, and their income tax rate is 30%. No potentially dilutive securities other than the convertible bonds were outstanding during 2020. Delila diluted earnings per share for 2020 would be
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