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Throughout the calendar year 2 0 2 0 , Kali Corporation has 4 0 0 , 0 0 0 common shares outstanding ( no preferred
Throughout the calendar year Kali Corporation has common shares
outstanding no preferred shares issued In addition, Collie has year,
bonds outstanding, issued at par in Each $ bond is convertible into
common shares after June Collie reported net income of $ for
calendar Their income tax rate is
Required:
Calculate basic and diluted earnings per share for
Solution: Please explain the solution
Basic earnings per share: $
Incremental effect of conversion of bonds
$
The conversion of the bonds would be antidilutive. No diluted EPS calculation is
required. The basic and diluted earnings per share of $
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