Question: Compute the basic & diluted earnings per share for XYZ for 2024. On January 1,2024, XYZ Company had 200,000 shares of $0.25 par common stock

Compute the basic & diluted earnings per share for XYZ for 2024.

On January 1,2024, XYZ Company had 200,000 shares of $0.25 par common stock outstanding. On May 1,2024, XYZ sold 30,000 shares of common stock for $56 per share. XYZ had the following preferred stock and bonds outstanding on January 1, 2024. All securities had been sold at par or face value. XYZ had stock options outstanding on January 1,2024, for the purchase of 20,000 shares of common stock for $30 per share. On October 1,2024 , options were granted for the purchase of an additional 40,000 shares at $45 per share. The average market price of the common stock for 2024 was $60 per share. XYZ paid no dividends during 2024 . The 2024 net income was $1,026,000. The income tax rate is 30%. INSTRUCTIONS: Compute the basic and diluted earnings per share for XYZ for 2024

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!

Question 2 - Calculation of Basic and Diluted Earnings per share Kent Company has, in its Stockholder's equity as of December 31, 2021, 1,276,596 shares of common stock issued and outstanding and...

Burns Company reported $796.765 million in net income in 2021. On January 1, 2021, the company had 401 million shares of common stock outstanding. On March 1, 2021, 24.6 million new shares of common...

Problem 16-7 Charles Austin of the controller's office of Sheffield Corporation was given the assignment of determining the Austin has compiled the information listed below basic and diluted earnings...

On December 31, 2023, Chi Chow Company had outstanding 460,000 shares of common stock and 46,000 shares of 7% cumulative preferred stock (par $10). February 28, 2024, issued an additional 42,000...

I ONLY NEED ANSWERS FOR: incremental earnings per share (bonds and preferred), 4A and 4B. Thank you! Francis Company has 28,800 shares of common stock outstanding at the beginning of 2013. Francis...

On December 31, 2023, Chi Chow Company had outstanding 460,000 shares of common stock and 46,000 shares of 7% cumulative preferred stock (par $10). February 28, 2024, Issued an additional 42,000...

Dear Tutor, I need assistance with the following questions. 250.Bow Company reported $239,000 net income for the current year. It has 100,000 shares of common shares outstanding for the entire year...

Select the most correct answer: 1. At the beginning of the year, XYZ issued employee stock options for 400,000 shares. Options on 200,000 shares have an excrcise price of $18, and options on the...

Burns Company reported net income of $600,000 for 2021. On January 1, 2021 the company had100, 000 shares of common stock outstanding. On April 1, 2021, the company purchased 10,000 shares of common...

Energy Sharing an object with mass in initially at rest, explodes into two fragments, one with mass mA and the other with mass mB' where mA + mB = m. (a) If energy Q is released in the explosion, how...

True or false? 1. HTTP is a stateless protocol. O no yes 2. A web session last as long as the TCP session in which it was initated. yes O no 3. Cookies are a mechanism by which clients and servers...

What are the components that make up the master budget?

Part 1 : Course Concepts ( Please complete one paragraph per bullet point. ) The concepts covered in Units 7 and 8 include fixed costs, variable costs, and production decisions in the perfectly...

prepare your data so that you can both describe and analyse your qualitative data in order to answer your research question;

evaluate the use of different types of evidence (written and visual) in designing and implementing a research project;

determine how to make use of data from management information systems;