At January 1, 2021, Canaday Corporation had outstanding the following securities: 690 million common shares 20 million 5% cumulative preferred shares, $50 par 6.4% convertible bonds, $3,000 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 40 million shares of common stock after July 1, 2020, at $14 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 $2,366 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: 690 million common shares 20 million 5% cumulative preferred shares, $50 par 6.4% convertible bonds, $3,000 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 40 million shares of common stock after July 1, 2020, at $14 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 $2,366 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).)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 10MC
Related questions
Question
![At January 1, 2021, Canaday Corporation had outstanding the following securities:
690 million common shares
20 million 5% cumulative preferred shares, $50 par
6.4% convertible bonds, $3,000 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 40 million shares of common stock after July 1, 2020, at $14 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 $2,366 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).)
Numerator
Denominator
Earnings per share
Basic
Diluted](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4a92e595-69a8-4ba3-9e62-d1ba59e7a231%2Fb8d316ee-ee2e-42a9-9ea7-3877a4f9c375%2Fq0lr9sj_processed.png&w=3840&q=75)
Transcribed Image Text:At January 1, 2021, Canaday Corporation had outstanding the following securities:
690 million common shares
20 million 5% cumulative preferred shares, $50 par
6.4% convertible bonds, $3,000 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 40 million shares of common stock after July 1, 2020, at $14 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 $2,366 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).)
Numerator
Denominator
Earnings per share
Basic
Diluted
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
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 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning