At January 1, 2021, Canaday Corporation had outstanding the following securities: 610 million common shares 20 million 6% cumulative preferred shares, $50 par 6.4% convertible bonds, $2,500 million face amount, convertible into 60 million common shares The following additional information is available: • On September 1, 2021, Canaday sold 72 million additional shares of common stock. • Incentive stock options to purchase 50 million shares of common stock after July 1, 2020, at $10 per share, were outstanding at the beginning and end of 2021. The average market price of Canaday's common stock was $20 per share during 2021. Canaday's net income for the year ended December 31, 2021, was $1,576 million. The effective income tax rate was 25%. ● Required: 1. & 2. Calculate basic and the diluted earnings per common share for the year ended December 31, 2021. (Round "Earnings per share" answers to 2 decimal places. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
At January 1, 2021, Canaday Corporation had outstanding the following securities: 610 million common shares 20 million 6% cumulative preferred shares, $50 par 6.4% convertible bonds, $2,500 million face amount, convertible into 60 million common shares The following additional information is available: • On September 1, 2021, Canaday sold 72 million additional shares of common stock. • Incentive stock options to purchase 50 million shares of common stock after July 1, 2020, at $10 per share, were outstanding at the beginning and end of 2021. The average market price of Canaday's common stock was $20 per share during 2021. Canaday's net income for the year ended December 31, 2021, was $1,576 million. The effective income tax rate was 25%. ● Required: 1. & 2. Calculate basic and the diluted earnings per common share for the year ended December 31, 2021. (Round "Earnings per share" answers to 2 decimal places. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku

Transcribed Image Text:At January 1, 2021, Canaday Corporation had outstanding the following securities:
610 million common shares
20 million 6% cumulative preferred shares, $50 par
6.4% convertible bonds, $2,500 million face amount, convertible into 60 million common shares
The following additional information is available:
• On September 1, 2021, Canaday sold 72 million additional shares of common stock.
• Incentive stock options to purchase 50 million shares of common stock after July 1, 2020, at $10 per share, were outstanding at the
beginning and end of 2021. The average market price of Canaday's common stock was $20 per share during 2021.
Canaday's net income for the year ended December 31, 2021, was $1,576 million. The effective income tax rate was 25%.
Required:
1. & 2. Calculate basic and the diluted earnings per common share for the year ended December 31, 2021. (Round "Earnings per
share" answers to 2 decimal places. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
Basic
Diluted
Numerator
1
1
1
Denominator
=
Earnings per share
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education