Basic and Dilated Earnings Per Share Bloodhound Corp. provides the following data for calendar 2023 Net Income $2,400,000 Transactions in Common Shares 1-Jan beginning 1-Mar purchase of treasury shares 1-Jun shares split 2 for 1 1-Novissuance of new shares D 8% Cumulative Convertible Preferred Shares (no par) Convertible into 200,000 common shares adjusted for split on June 1 2 3 4 5 Stock Options 6 Exercisable at the option price of $25 per share. Average market price in 2023 was $30 (market price 8 and option price adjusted for split). 7 9 20 Required (show all your calculations) 21 2 23 a) b) 60,000 shares Change -60,000 940,000 120,000 Cumulative $1,000,000 Calculate basic earnings per share for 2023. Calculate diluted earnings per share for 2023. 1,000,000 940,000 1,880,000 2,000,000
Basic and Dilated Earnings Per Share Bloodhound Corp. provides the following data for calendar 2023 Net Income $2,400,000 Transactions in Common Shares 1-Jan beginning 1-Mar purchase of treasury shares 1-Jun shares split 2 for 1 1-Novissuance of new shares D 8% Cumulative Convertible Preferred Shares (no par) Convertible into 200,000 common shares adjusted for split on June 1 2 3 4 5 Stock Options 6 Exercisable at the option price of $25 per share. Average market price in 2023 was $30 (market price 8 and option price adjusted for split). 7 9 20 Required (show all your calculations) 21 2 23 a) b) 60,000 shares Change -60,000 940,000 120,000 Cumulative $1,000,000 Calculate basic earnings per share for 2023. Calculate diluted earnings per share for 2023. 1,000,000 940,000 1,880,000 2,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1
Basic and Diluted Earnings Per Share
2
3 Bloodhound Corp. provides the following data for calendar 2023
4 Net Income
$2,400,000
5
6
7
8
Transactions in Common Shares
1-Jan beginning
1-Mar purchase of treasury shares
1-Jun shares split 2 for 1
1-Novissuance of new shares
9
10
11
8% Cumulative Convertible Preferred Shares (no par)
12 Convertible into 200,000 common shares
13
adjusted for split on June 1
14
15 Stock Options
16 Exercisable at the option price of $25 per share.
17 Average market price in 2023 was $30 (market price
18 and option price adjusted for split).
19
20 Required (show all your calculations)
21
22
23
a)
b)
60,000 shares
Change Cumulative
1,000,000
940,000
-60,000
940,000 1,880,000
120,000
2,000,000
$1,000,000
Calculate basic earnings per share for 2023.
Calculate diluted earnings per share for 2023.
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Step 1: Define Potential Common Shares
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VIEWStep 3: Calculation of Basic Earning Per Share
VIEWStep 4: Calculation of Potential Common Shares
VIEWStep 5: Calculation of Diluted Earning Per Share
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