Ahnberg Corporation had 800,000 shares of common stock issued and outstanding at January 1. No common shares were issued during the year, but on January 1 Ahnberg issued 100,000 shares of convertible preferred stock. The preferred shares are convertible into 200,000 shares of common stock. During the year Ahnberg paid $60,000 cash dividends on the preferred stock. Net income was $1,500,000. What were Ahnberg’s basic and diluted earnings per share for the year?
Ahnberg Corporation had 800,000 shares of common stock issued and outstanding at January 1. No common shares were issued during the year, but on January 1 Ahnberg issued 100,000 shares of convertible preferred stock. The preferred shares are convertible into 200,000 shares of common stock. During the year Ahnberg paid $60,000 cash dividends on the preferred stock. Net income was $1,500,000. What were Ahnberg’s basic and diluted earnings per share for the year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Ahnberg Corporation had 800,000 shares of common stock issued and outstanding at January 1. No common
shares were issued during the year, but on January 1 Ahnberg issued 100,000 shares of convertible preferred
stock. The
$60,000 cash dividends on the preferred stock. Net income was $1,500,000. What were Ahnberg’s basic and
diluted earnings per share for the year?
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