Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sheridan Inc. has 1.05 million common shares outstanding as at January 1, 2020. On June 30, 2020, 4% convertible bonds were converted into 110,000 additional

image text in transcribedimage text in transcribed

Sheridan Inc. has 1.05 million common shares outstanding as at January 1, 2020. On June 30, 2020, 4% convertible bonds were converted into 110,000 additional shares. Up to that point, the bonds had paid interest of $ 300,000 after tax. Net income for the year was $ 1,298,988. During the year, the company issued the following: 1. June 30: 11,200 call options giving holders the right to purchase shares of the company for $ 30 2. Sept. 30: 16,200 put options allowing holders to sell shares of the company for $25 On February 1, Sheridan also purchased in the open market 11,200 call options on its own shares, allowing it to purchase its own shares for $ 27. Assume the average market price for the shares during the year was $ 35. Part 1 Calculate the required EPS numbers under IFRS. For simplicity, ignore the impact that would result from the convertible debt being a hybrid security. (Round answers to 2 decimal places, e.g. 15.25.) Basic EPS $ Diluted EPS $

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

Research On Professional Responsibility And Ethics In Accounting Volume 24

Authors: Charles Richard Baker

1st Edition

180071758X, 9781800717589

More Books

Students also viewed these Accounting questions

Question

f. How do you apply for the position?

Answered: 1 week ago

Question

LO6 Define harassment and the role that HR plays in addressing it.

Answered: 1 week ago