Question: On January 2, 2011, McGregor Co. issued at par $45,000 of 9% bonds convertible in total into 4,000 shares of McGregors common stock . No

On January 2, 2011, McGregor Co. issued at par $45,000 of 9% bonds convertible in total into 4,000 shares of McGregor’s common stock. No bonds were converted during 2011. Throughout 2011, McGregor had 10,000 shares of common stock outstanding.

McGregor’s 2011 net income was $75,000. McGregor’s tax rate is 30%. No other potentially dilutive securities other than the convertible bonds were outstanding during 2011. For 2011, compute McGregor’s basic and diluted EPS.

Step by Step Solution

★★★★★

3.35 Rating (170 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Basic EPS Net income Number of common shares outstanding Basic EPS Diluted EPS Ne... 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)

92-B-A-S-E (289).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

info 1 b c Sales Mountain Sports Ltd. Contribution Margin Income Statement For the Year Ended Dec 31, 2019 TOTAL $1,782,918 Less: Variable Costs (must be listed in alphabetical order): Rent PERCENT...

On January 1, 2014, VAP Co issued at par $15,000 of its 5% bonds, convertible into 2,000 shares of VAP Co common stock. No bonds were converted during 2014. Throughout 2014, VAP Co had 1,500 shares...

On January 2, 2011, the Deadra Band acquires sound equipment for concert performances at a cost of $32,500. The band estimates it will use this equipment for four years, during which time it...

On January 2 2011 the Jacksons Company purchased equipment to be used in its manufacturing process. The equipment has an estimated life of eight years and an estimated residuals value of $30,625. The...

On January 2, 2018, Ava Co. issued at face value $94000 of 9% bonds convertible in total into 11790 shares of Ava's common stock. No bonds were converted during 2018. Throughout 2018, Ava had 10,000...

On January 2, 2014, Wondrous Co. issued at par $50,000 of 4 percent bonds convertible, in total, into 5,000 shares of Wondrous's common stock. No bonds were converted during 2014. Throughout 2014...

On January 2, 2011, Worley Co. issued at par $50,000 of 4 percent bonds convertible, in total, into 5,000 shares of Worley's common stock. No bonds were converted during 2011. Throughout 2011 Worley...

Moving to another question will save this response. Question 23 On January 2, 2018, Ava Co. issued at face value $53,300 of 0% bonds convertible in total into 9,840 ware of Nivel's common stock No...

15. Question 15 3.4 points Save Anske On January 2 2021. Swisher Co. issued at face value $23.000 of 4% bonds convertible in total into 1600 shares of Swisher's common stock. No bonds were converted...

On January 2, 2021, L Co. issued at face value $24,500 of 4% bonds convertible in total into 1,900 shares of L's common stock. No bonds were converted during 2021. Throughout 2021, L had 1,900 shares...

On January 2, 2021, L Co. issued at face value $20,000 of 4% bonds convertible in total into 1.000 shares of L's common stock. No bonds were converted during 2021. Throughout 2021, L had 1,000 shares...

There is $320 available to fence in a rectangular garden. The fencing for the side of the garden facing the road costs $15 per foot, and the fencing for the other 3 sides costs $5 per foot. The...

The increase in the width of depletion region in a p-n junction diode is due to : (1) increase in forward current (2) forward bias only (3) reverse bias only (4) both forward bias and reverse bias

The costs of rework are always charged to the specific jobs in which the defects were originally discovered." yes. rework ( abnormal and normal ) are always charged to the specific jobs where the...

Find the Volume of Solid of Revolution about x, y ? = a', y =2?

Find the Volume of Solid of Revolution about y, a? + 4y? = 4 and the coordinate axes in quadrant 1 x + 4y - 4

Let P(x) be the statement x + 4x > x + 5 Show your proof and write its quantifier.

Find the volume of solid of revolution. about y, a? + 4y? = 4 and the coordinate axes in quadrant 1 x? + 4y - 4

Find the Volume of Solid of Revolution 1 about x, y = x = 2, V2 + x2 and the coordinate axes.

Distinguish between line and staff positions. Give two examples of each in a university setting.

Explain how cash-basis accounting for pension plans differs from accrual-basis accounting for pension plans. Why is cash-basis accounting generally considered unacceptable for pension plan accounting?

Analyse the below TWO scenarios and answer the questions accordingly: a. During your 25th birthday, your father had a surprise for you by opening a saving accounts with a deposit of RM10,000. He...

Under the Liquidity Premium Theory, if today's one year spot rate is 4%, the forward one-year rate in one year is 6%, and the liquidity premium on a 2-year bond is 0.25%, today's 2-year spot rate...

Question 1 Brangelina Adoption Agencys general ledger shows a cash balance of $11,675. The balance of cash in the March-end bank statement is $7,347. A review of the bank statement reveals the...