Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show all computations On January1, 2021, Bell Company had 2,000,000 shares of common stock outstanding and 60,000 shares of 6%,$100 par, cumulative preferred stock

please show all computations
image text in transcribed
On January1, 2021, Bell Company had 2,000,000 shares of common stock outstanding and 60,000 shares of 6%,$100 par, cumulative preferred stock outstanding. On April 1, Bell purchased 36,000 shares of common stock as treasury stock for $30 per share. It sold 60,000 treasury shares on Nov. 1 , at $45 per share. Net income for 2021 was $9,085,430. Also outstanding in 2021 were stock options giving executives the right to buy 60,000 common shares at $30. On January 1 , the market price of the common shares was $35; on July 1,$40, and on December 31,$45. The company's tax rate is 40%. 5 million dollars of 6% bonds were issued at face value on January 1, 2016. Those bonds are convertible into common stock, in a ratio of 1:5. None of them had been converted by December 31 and no stock options were exercised during the year. Required: Showing your computations, present in good order Bell's earnings per share for 2021

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions