Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show work thank you! 9128 Assume that the following data relative to XYZ Company for 2017 is available: Net Income.. $2,100,000 Tax Rate... .35%

Please show work thank you! image text in transcribed
9128 Assume that the following data relative to XYZ Company for 2017 is available: Net Income.. $2,100,000 Tax Rate... .35% Dividends. Preferred declared but not paid Transactions in Common Shares Jan. 1. 2017, Beginning number.. Apr. 1. 2017, Issuance of shares. June 1, 2017, 100% stock dividend Sep 1, 2017, Purchase of treasury shares. Nov. 1, 2017, Issuance of shares.... Change .400,000 .100.000 .75,000 45,000 All convertible securities conversion factors have been adjusted for the stock dividend. 10%, $100 par, Cumulative Convertible Preferred Stock 30,000 shares. Issued in 2015 at $3,800,000 convertible into 360,000 shares of common. 10% $100 par. Non-Cumulative Preferred Stock 10,000 shares issued for $1,500,000 in 2016, 8% Convertible Bonds The bonds originally sold for $1,148,779 on January 1, 2017, and the discount or premium is amortized using the effective interest method. The market rate is 6%. Interest is payable on July 1 and January 1. Each of the 1000, $1,000 bonds is convertible into 25 shares of common stock. Stock Options Exercisable at the option price of $40 per share. Average market price in 2017, $30..... .100,000 options Stock Options Exercisable at the option price of $25 per share. Average market price in 2017, $30...... .......150,000 options Required: 1. Compute the basic earnings per share for 2017. (carry 4 places beyond decimal) 2. Compute the diluted earnings per share for 2017. (carry 4 places beyond decimal)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Information Technology Auditing

Authors: Hall, J Scott Harr

3rd Edition

1133008046, 978-1439079119

More Books

Students also viewed these Accounting questions

Question

Where do you see the organization in 5/10 years?

Answered: 1 week ago

Question

What is the effect of word war second?

Answered: 1 week ago

Question

14.5 Describe how accidents at work can be prevented.

Answered: 1 week ago