On June 1, 2015, Carla Company and Sarasota Company merged to form Ivanhoe Inc. A total of
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On April 1, 2017, the company issued an additional 568,000 shares of stock for cash. All 1,376,000 shares were outstanding on December 31, 2017. Ivanhoe Inc. also issued $600,000 of 20-year, 7% convertible bonds at par on July 1, 2017. Each $1,000 bond converts to 44 shares of common at any interest date. None of the bonds have been converted to date. Ivanhoe Inc. is preparing its annual report for the fiscal year ending December 31, 2017. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,547,000. (The tax rate is 40%.) Determine the following for 2017. (a) The number of shares to be used for calculating: (Round answers to 0 decimal places, e.g. $2,500.) (1) Basic earnings per share (2) Diluted earnings per share shares $ shares (b) The earnings figures to be used for calculating: (Round answers to 0 decimal places, e.g. $2,500.) (1) Basic earnings per share (2) Diluted earnings per share $ On April 1, 2017, the company issued an additional 568,000 shares of stock for cash. All 1,376,000 shares were outstanding on December 31, 2017. Ivanhoe Inc. also issued $600,000 of 20-year, 7% convertible bonds at par on July 1, 2017. Each $1,000 bond converts to 44 shares of common at any interest date. None of the bonds have been converted to date. Ivanhoe Inc. is preparing its annual report for the fiscal year ending December 31, 2017. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,547,000. (The tax rate is 40%.) Determine the following for 2017. (a) The number of shares to be used for calculating: (Round answers to 0 decimal places, e.g. $2,500.) (1) Basic earnings per share (2) Diluted earnings per share shares $ shares (b) The earnings figures to be used for calculating: (Round answers to 0 decimal places, e.g. $2,500.) (1) Basic earnings per share (2) Diluted earnings per share $
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Related Book For
Accounting
ISBN: 978-0176509743
Volume 1, 2nd canadian Edition
Authors: Carl warren, James Reeve, Jonathen Duchac, Sheila Elworthy,
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