Information from the financial statements of Ames Fabricators, Inc., included the following: 

 

Ames's net income for the year ended December 31, 2021, is $780,000. The income tax rate is 25%. Ames paid dividends of $5 per share on its preferred stock during 2021. r

Required:

Compute basic and diluted earnings per share for the year ended December 31, 2021. 

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Common shares Convertible preferred shares (convertible into 76,000 shares of common) 8% convertible bonds (convertible into 30,000 shares of common) December 31 2020 2021 100,000 100,000 28,800 28,800 $1,000,000 $1,000,000 Common shares Convertible preferred shares (convertible into 76,000 shares of common) 8% convertible bonds (convertible into 30,000 shares of common) December 31 2020 2021 100,000 100,000 28,800 28,800 $1,000,000 $1,000,000

Answer rating: 100% (QA)

Numerator Denominator Earnings per sha... View the full answer