On January 1, 2016, Tonge Industries had outstanding 780,000 common shares ($1 par) that originally sold for
Question:
On January 1, 2016, Tonge Industries had outstanding 780,000 common shares ($1 par) that originally sold for $30 per share, and 9,000 shares of 10% cumulative preferred stock ($100 par), convertible into 90,000 common shares.
On October 1, 2016, Tonge sold and issued an additional 16,000 shares of common stock at $36. At December 31, 2016, there were 28,000 incentive stock options outstanding, issued in 2015, and exercisable after one year for 22,000 shares of common stock at an exercise price of $34. The market price of the common stock at year-end was $52. During the year, the price of the common shares had averaged $44.
Net income was $920,000. The tax rate for the year was 25%.
Required:
Compute basic and diluted EPS for the year ended December 31, 2016. (Round "Earnings per share" answers to 2 decimal places. Enter your answers in thousands.)
Intermediate Accounting Reporting and Analysis
ISBN: 978-1337788281
3rd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach