During 2023, Anderson Corp. had 250,000 common shares outstanding for the full year. Market prices of the
Question:
During 2023, Anderson Corp. had 250,000 common shares outstanding for the full year. Market prices of the common shares during 2021 were:
January 1: $50
Year's average: $53
December 31: $55
During 2023, there were:
50,000 outstanding stock options to buy common shares at $38 a share.
$3,000,000 of 6% convertible bonds issued at par. Each $1,000 bond is convertible into 25 common shares.
25,000 preferred shares each paying a $3.20 dividend and each convertible to one common share.
The income tax rate is 30%. The corporation reported $1,000,000 net income for calendar 2023.
Required
Calculate basic and diluted earnings per share for 2023. Clearly indicate your answers for basic and fully dilute EPS.
Intermediate Accounting Volume 2
ISBN: 9781119740445
13th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy