ABC 's Net Income (net income) for the year 2022 was $980,000 As of the end of 2021, the total outstanding shares of DE ABC common stock were 1,585,000, par value of $1 At the beginning of January ABC purchased 210,000 common shares at $40 and retired them During both years ABC had 5,000 preferred ...

Basic Earnings per Share First we need to adjust the number of outstanding shares after the repurcha ...

ABC's Net Income (net income) for the year 2022 was $980,000. As of the end of 2021,

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Question:

ABC's Net Income (net income) for the year 2022 was $980,000.

As of the end of 2021, the total outstanding shares of DE ABC common stock were 1,585,000, par value of $1

At the beginning of January ABC purchased 210,000 common shares at $40 and retired them.

During both years ABC had 5,000 preferred shares outstanding convertible into 2,500 common shares outstanding. These shares received a dividend of $5,000 in 2022.

During 2022, ABC had outstanding since 1/1 a total of 250,000 options convertible into 500,000 common shares.

Required:

1. Calculate ABC's Basic Profit for 2022.

2. Calculate ABC's Diluted Earnings for 2022