Question: BRI Inc. had 2 , 4 0 0 , 0 0 0 shares of common stock outstanding on December 3 1 , 2 0 x

BRI Inc. had 2,400,000 shares of common stock outstanding on December 31,20x1. An additional 240,000 more on October 1. BRI had outstanding $7,200,000 of 4% convertible bonds. Each $1,000 bond is convertible into 20 shares of its common stock. The company earned a net income of $7,000,000 in 20x2 and paid no dividents. The company's tax rate is 20%. In 20x2, what amounts will BRI report for basic and diluted earnings per share?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

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

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!