1 On January 1st 2015, The Bond James Bond (BJB) Company purhcased all of the voting stock of the Spectre Company at book value 2 At the beginning of 2022, Spectre Company issued 500 shares of 6% cumulative preferred stock 3 On December 31st 2022 BJB and Spectre had the following (note: there were no transactions between Spectre and BJB in 2022) 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Commonstock $1 par additional pic common preferred stock $100 par retained earnings Sales expenses net income BJB 50000 100000 0 Part 1: In 2022 (no transactions between the 2 companies) BJB sales expenses net income 800000 100000 40000 60000 Required: Calculate BJB's earnings per share (EPS) for 2022 Part 2: In 2022 (no transactions between the 2 companies) BJB 100000 40000 60000 Spectre 5000 5000 50,000 20000 Spectre 30000 12000 18000 Spectre 30000 12000 18000 Required: the preferred stock is convertible where each share of preferred stock can be converted into 2 shares of Spectre Common stock. Calculate BJB's earning per share (EPS) for 2022
1 On January 1st 2015, The Bond James Bond (BJB) Company purhcased all of the voting stock of the Spectre Company at book value 2 At the beginning of 2022, Spectre Company issued 500 shares of 6% cumulative preferred stock 3 On December 31st 2022 BJB and Spectre had the following (note: there were no transactions between Spectre and BJB in 2022) 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Commonstock $1 par additional pic common preferred stock $100 par retained earnings Sales expenses net income BJB 50000 100000 0 Part 1: In 2022 (no transactions between the 2 companies) BJB sales expenses net income 800000 100000 40000 60000 Required: Calculate BJB's earnings per share (EPS) for 2022 Part 2: In 2022 (no transactions between the 2 companies) BJB 100000 40000 60000 Spectre 5000 5000 50,000 20000 Spectre 30000 12000 18000 Spectre 30000 12000 18000 Required: the preferred stock is convertible where each share of preferred stock can be converted into 2 shares of Spectre Common stock. Calculate BJB's earning per share (EPS) for 2022
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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