Anson Company had 8,000,000 shares of common stock outstanding on December 31, year 11 An additional 1,200,000 shares of common stock were issued on April 1, year 12 and 1,000,000 more on July 1, year 12 On October 1, year 12, Anson issued 50,000 $ 1,000 face value 4 convertible bonds Each bond is ...

Choice c is correct 8000000 shares were outstanding at the beginning of the year For basic earn ...

Anson Company had 8,000,000 shares of common stock outstanding on December 31, year 11. An additional 1,200,000

Question:

Anson Company had 8,000,000 shares of outstanding on December 31, year 11. An additional 1,200,000 shares of were issued on April 1, year 12 and 1,000,000 more on July 1, year 12. On October 1, year 12, Anson issued 50,000 $ 1,000 4% convertible bonds. Each bond is convertible into 20 shares of common stock. No bonds were converted into in year 12. What is the number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively, in year 12?
a. 8,000,000 and 8,000,000
b. 9,400,000 and 9,400,000
c. 9,400,000 and 9,650,000
d. 7,500,000 and 8,500,000.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...