There were no changes during 2018 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 75,000 shares of common stock at $20 per share.

A. Compute basic earnings per share for 2018.

B. Compute diluted earnings per share for 2018.

 

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of Basic and Diluted EPS) The information below pertains to Barkley Company for 2018. $1,200,000 (Computation Net income for the year 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock Common stock, $10 par value Tax rate for 2018 Average market price of common stock 2,000,000 4,000,000 6,000,000 40% $25 per share of Basic and Diluted EPS) The information below pertains to Barkley Company for 2018. $1,200,000 (Computation Net income for the year 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock Common stock, $10 par value Tax rate for 2018 Average market price of common stock 2,000,000 4,000,000 6,000,000 40% $25 per share

Answer rating: 100% (QA)

Net income 1200000 Dividend on preference shares 40000006 Number of common stock outst... View the full answer