Question 3

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Crane Corporation earned net income of $240,000 in 2017 and had 87,000 common shares outstanding throughout the year. Also outstanding all year was $525,400 of 10% bonds that are convertible into 17,000 common shares. Cranes tax rate is 45%. Calculate Cranes 2017 diluted earnings per share. For simplicity, ignore the IFRS requirement to record the debt and equity components of the bonds separately. (Round answer to 2 decimal places, e.g. 15.25.)

Diluted earnings per share

$

Question 4

Cullumber Corporation earned net income of $332,000 in 2017 and had 100,000 common shares outstanding throughout the year. Also outstanding all year was $823,270 of 10% bonds that are convertible into 10,000 common shares. Cullumbers tax rate is 40%. Calculate Cullumbers 2017 diluted earnings per share. For simplicity, ignore the IFRS requirement to record the debt and equity components of the bonds separately. (Round answer to 2 decimal places, e.g. 15.25.)

Earnings per share

$

Question 5

Sheridan Corporation reported net income of $440,000 in 2017 and had 425,000 common shares outstanding throughout the year. On May 1, 2017, Sheridan issued 5% convertible bonds. Each $1,000 bond is convertible into 120 common shares. Total proceeds at par amounted to $800,000, and was allocated to the liability and equity components under the residual value method. The liability component was measured first, at present value of the stream of interest payments plus present value of the bond maturity value, all discounted at 8% (the interest rate that applies to similar straight bonds). At the time of issuance, the liability component was recorded at $738,148. Sheridans tax rate is 30%. Calculate Sheridans 2017 diluted earnings per share. (Round answer to 2 decimal places, e.g. 15.25.)

Diluted earnings per share

$

Question 6

Blossom Corporation reported net income of $297,000 in 2017 and had 199,000 common shares outstanding throughout the year. Also outstanding all year were 21,000 (written) options to purchase common shares at $10 per share. The average market price for the common shares during the year was $15 per share. Calculate the diluted earnings per share. (Round answer to 2 decimal places, e.g. 15.25.)

Diluted earnings per share

$

Solve Q 3 to 6