Question
TBSFCO0305 Reporting EPS The following information relates to one of the Quant Corporation's affiliates: Bottom portion of income statement for current year: Events affecting common
TBSFCO0305 Reporting EPS
The following information relates to one of the Quant Corporation's affiliates:
Bottom portion of income statement for current year: | Events affecting common stock outstanding for the current year: | |||
Income from continuing operations before tax | $1,000 | Shares issued, January 1 | 400 | |
Income tax expense | (350) | Shares in the treasury, January 1 | 50 | |
Income from continuing operations | 650 | Shares issued, May 1 | 120 | |
Discontinued operations, net of $30 tax | 105 | Shares split 2-for-1, September 1 | ||
Net income | $ 755 | Shares purchased for treasury, November 1 | 240 |
The following two securities were outstanding the entire year:
Cumulative convertible preferred stock, 10 shares, 6%, $100 par, each share convertible into 20 shares of common stock. The conversion rate of 20 shares reflects the effect of the stock split.
Options to purchase 40 shares of common stock at $3 per share. Average market price of common stock during the year was $8. The number of options reflects the effect of the stock split.
In the spreadsheet below, show the affiliate's earnings per share reporting for the current year. This reporting is typically found immediately below the income statementthis firm chooses to report all required per share amounts immediately below the income statement. In the first column, find the title of the earnings amount (line item) to be shown on a per share basis. In the second column, enter the resulting amount for basic earnings per share (without dilution). In the third column, enter the resulting amount for diluted earnings per share. Round amounts to three decimals and include the preceding "0" before the decimal point (e.g. 0.100 or 1.000). You may not need all rows.
Line item shown on a per share basis | Amount for EPS without dilution | Amount for EPS assuming dilution |
Income from continuing operations | 123 | 123 |
Discontinued operations | 123 | 123 |
__________ | ___________ | |
Net income | 123 | 123 |
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