Question: Assume the same information as in BE17-13 except that the 10% bonds are convertible into 10,000 common shares. Calculate Thiessen's 2014 diluted earnings per share.

Assume the same information as in BE17-13 except that the 10% bonds are convertible into 10,000 common shares. Calculate Thiessen's 2014 diluted earnings per share.

Data From BE17-13

Thiessen Corporation earned net income of $300,000 in 2014 and had 100,000 common shares outstanding throughout the year. Also outstanding all year was $800,000 of 10% bonds that are convertible into 26,000 common shares. Thiessen’s tax rate is 25%. Calculate Thiessen’s 2014 diluted earnings per share. For simplicity, ignore the IFRS requirement to record the debt and equity components of the bonds separately.

Step by Step Solution

★★★★★

3.42 Rating (161 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Basic earnings per share is 300 300000100000 Incre... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1102-B-M-A-S-O-C-F(3903).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Assume the same information as in BE17-15 except that Glavin can buy its own common shares for $10 each. How should the options be treated for purposes of the diluted EPS calculation?

Assume the same information as in BE17-16 except that the put options allow the holder to sell Glavin's shares to Glavin at $11 each. How should these options be treated for purposes of the diluted...

Assume the same information as in BE17-2 except that the preferred shares are cumulative and the dividends have not yet been declared or paid. In BE Hedley Corporation had 2011 net income of $1.4...

Assume the same information as in BE17-13 except that the 10% bonds are convertible into 10,000 common shares. Calculate Thiessen's 2017 diluted earnings per share. In BE17-13 Thiessen Corporation...

Assume the same information as in BE17.15 except that the 10% bonds are convertible into 10,000 common shares. Calculate Thiessen's 2020 diluted earnings per share. Round to the nearest cent. Data...

Part 1 ? Vertical and Horizontal Analysis Vertical Analysis Vertical analysis is a method in which the relationship between items in the same financial statement is identified by converting all...

I need 24-28 all parts. Thanks! E16.24 (LO 5) (EPS with Convertible Bonds and Preferred Stock) The Simon Corporation issued 10-year, $5,000,000 par, 7% callable convertible subordinated debentures on...

Please i need help! 1.Using the Dupont formula from class, calculate IBM's Q3 2016 and Q3 2017 ROE - Use period-end balance sheet as averages (Just use the end of period balance sheet numbers - don't...

Questo CPA 073 1. Interest cost included in the net pension cost recognized for a per defined benefit pension plan resents the Shortage between the expected and returns on plan assets. h) increase in...

hi, please the question is done, but can someone explain how did you find the number in the answear G- What should Kim ford recommend regarding an investment nike? how did you find the number...

Steam enters an adiabatic turbine steadily at 400C and 3 MPa, and leaves at 50 kPa. The highest possible percentage of mass of steam that condenses at the turbine exit and leaves the turbine as a...

How does the triarchic theory help us to understand intelligence?

3 . ( 6 points ) Consider the following extendable hashing index. 2 0 * 4 * 8 * 1 2 * 3 1 * g * 1 7 * 3 3 0 0 0 0 0 1 0 1 0 0 1 1 1 0 0 1 0 1 1 1 0 2 1 1 1 3 * 7 * 1 1 * 1 5 * 3 6 * 1 4 2 * 1 0 " 2 6...

From the developed-developing country contrasts in Chapter 3, prepare a list of adjustments that Pierre Charles must make as he makes the transition from Switzerland and Swiss ways of doing things to...

Carly Inc. reported the following accounting income (loss) and related tax rates during the years 2012 to 2018: Accounting income (loss) and taxable income (loss) were the same for all years since...

Chen Corporation reported income before income tax for the year ended December 31, 2017 of $1,645,000. In preparing the 2017 financial statements, the accountant discovered an error that was made in...

Aaron Engines Ltd. operates small engine repair outlets and is a tenant in several of Tran Holdings Inc.'s strip shopping malls. Aaron signed several lease renewals with Tran that each called for a...

Which of the following statements is CORRECT? a. A change in the personal tax rate should not affect firms' capital structure decisions. b. "Business risk" is differentiated from "financial risk" by...

EXAMPLE 5-4 Calculating a Treasury Bill Asked Discount Yield Suppose that you purchase the T-bill maturing on September 15, 2016, for $9,991.362. The T-bill matures 122 days after the settlement...

Which of the following is ascertained by examining the economic benefits flowing into an entity (except those of the owners) and decreases in economic benefits in the form of expenses? A....