On December $31,2023,$ Intermediate CPA Inc., had net income of $$3,100,000.$ During the year, Common Stock were outstanding as follows: January $1,$ Beginning $400,000,$ Issued on July $31$st $320,000$ shares and on December $15$th issued $540,000.8\mathrm{.}25\%$ $$3,500,000$ bonds were outstanding. The bonds had a denomination of $$1,000$ each convertible into $25$ shares of common stock. No bonds were converted. Of the $1,000,000$ shares of Cumulative Preferred Stock outstanding on Jan $1,2023,40\%$ were converted on March $31$st$,2018.$ Preferred Shareholders received dividends of $\mathrm{.}10$ each on December $31,2018.$ The Tax Rate is $35\%.$

 

 

Requirements:

Find the following for Intermediate CPA Inc $($Assumed Conversion$)$:$-$

$1.$ The weighted$-$average number of shares used to calculate BEPS

$2.$ The control number

$3.$ Earnings per Basic share

$4.$ The weighted$-$average number of shares used to calculate DEPS.

$5.$ The effects of the assumed conversions on the numerator of the DEPS

$6.$ Diluted Earnings Per Share

Answer rating: 100% (QA)

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