Sheridan Corporation issued $5 million of 10-year, 6% callable convertible subordinated debentures on January 2, 2020....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sheridan Corporation issued $5 million of 10-year, 6% callable convertible subordinated debentures on January 2, 2020. The debentures have a face value of $1,000, with interest payable annually. The current conversion ratio is 14:1, and in two years it will increase to 17:1. At the date of issue, the bonds were sold at 98 to yield a 6.2753% effective interest rate. Bond discount is amortized using the effective interest method. Sheridan's effective tax was 30%. Net income in 2020 was $7.4 million, and the company had 2.4 million shares outstanding during the entire year. For simplicity, ignore the IFRS requirement to record the debentures' debt and equity components separately. (a) Calculate both basic and diluted earnings per share for the year ended December 31, 2020. (Round answers to 2 decimal places, e.g. 15.25.) Basic earnings per share Diluted earnings per share पण Sheridan Corporation issued $5 million of 10-year, 6% callable convertible subordinated debentures on January 2, 2020. The debentures have a face value of $1,000, with interest payable annually. The current conversion ratio is 14:1, and in two years it will increase to 17:1. At the date of issue, the bonds were sold at 98 to yield a 6.2753% effective interest rate. Bond discount is amortized using the effective interest method. Sheridan's effective tax was 30%. Net income in 2020 was $7.4 million, and the company had 2.4 million shares outstanding during the entire year. For simplicity, ignore the IFRS requirement to record the debentures' debt and equity components separately. (a) Calculate both basic and diluted earnings per share for the year ended December 31, 2020. (Round answers to 2 decimal places, e.g. 15.25.) Basic earnings per share Diluted earnings per share पण
Expert Answer:
Answer rating: 100% (QA)
Calculation of Basic earnings per share Basic earning per share ... View the full answer
Related Book For
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
Posted Date:
Students also viewed these accounting questions
-
What's the mechanism of action of trizepatide, the new diabetes 2 drug? and how does it differ from GLP-1 agonists?
-
Diluted EPS. Can diluted earnings per share on bottom-line net income or net loss exceed basic earnings per share? Explain.
-
A 6.5% bond of $50 000 with interest payable quarterly is to be redeemable at par in 12 years. (a) What is the purchase price to yield 8% com- pounded quarterly? (b) What is the book value after 9...
-
The species-area curve tells us that slowing or halting___________ ___________ will potentially slow the rate of extinction.
-
Why would TMCC be willing to accept such a small amount today ($24,099) in exchange for a promise to repay about four times that amount ($100,000) in the future?
-
Find the mean , variance 2, and standard deviation for the given values of n and p. Assume the binomial conditions are satisfied in each case. n = 64, p = 0.5
-
Compute the value of the chi-square statistic. Exercises 1015 refer to the following data: Anthropologists can estimate the birthrate of an ancient society by studying the age distribution of...
-
You were not totally satisfied with the vertical analysis, so you now want to run a horizontal analysis of this company. Complete table 4-6. Perform a horizontal analysis on these accounts. Compare...
-
A trading company, buys and sells merchandise. An abstract of accounting data for 2017 (January to December) is following (in 000 ): Sales Return on sales Beginning inventory Ending inventory...
-
How is Integration from Calculus and Calculus II used and applied in the field of Computer Sciences.
-
In what ways might social media be used to predict sales and manage inventory?
-
The Allwardt Trust is a simple trust that correctly uses the calendar year for tax purposes. Its income beneficiaries (Lucy and Ethel) are entitled to the trust's annual accounting income in shares...
-
Arrange this into a speech: It gives me great pleasure to have this opportunity to speak with you today on theimpactof accounting on Caribbean society. Accounting is an essential component of...
-
A company receives a 5-year 8% accrued interest $100,000 principal loan. Principal (and accrued interest) is only paid at the end of 5 years. The company must pay the lender 4% fees up front and has...
-
(a) Why is designing truly secure systems difficult? State TWO reasons. (4 marks) (b) In the context of network security, what are Dictionary and Reply attacks? (4 marks) (c) Explain how do Intrusion...
-
A man holds a 12 N weight motionless by pulling on the rope. Note that 12 N is weight of the block, not the mass. What is the tension of rope A in Newtons?
-
For each of the following message signals calculate the modulation index if a DC signal of 1 volt is to be added to the message. m (t) a) m(t) b) c) -0.94 t -24- + V t
-
During 2012, Cheng Book Store paid $483,000 for land and built a store in Georgetown. Prior to construction, the city of Georgetown charged Cheng $1,300 for a building permit, which Cheng paid. Cheng...
-
For Castor Corporation, year-end plan assets were $1,753,000. At the beginning of the year, plan assets were $1,359,000. During the year, contributions to the pension fund were $170,000, while...
-
On December 31, 2020, before the books were closed, management and the accountant at Flanagan Inc. made the following determinations about three depreciable assets. 1. Depreciable asset A (building)...
-
The unadjusted trial balance of Clancy Inc., a private company following ASPE, at December 31, 2020, is as follows: Additional information: 1. Actual rent costs amounted to $1,500 per month. The...
-
The standard enthalpy change of combustion of acetylene is \(-1300.48 \mathrm{~kJ}\) at \(298 \mathrm{~K}\) with \(\mathrm{H}_{2} \mathrm{O}\) in the liquid state. Calculate the standard enthalpy of...
-
Which instrument is used to determine the heat of combustion of a fuel?
-
A piston-cylinder device contains \(1.2 \mathrm{~kg}\) of saturated water vapour at \(180^{\circ} \mathrm{C}\). Heat is transferred to steam. As a result, steam expands reversibly to a final pressure...
Study smarter with the SolutionInn App