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Blossom Inc. had net income for the current year ending December 31, 2023 of $1,230,480. During the entire year, there were 506,000 common shares outstanding. The company had two classes of preferred shares outstanding: the Class A preferred shares were $2.62 cumulative shares of which 10,000 were outstanding, and were convertible to common shares at a rate of 1:1. There were 102,000 $5.62 Class B non-cumulative preferred shares outstanding that were also convertible at a rate of 1:1. Blossom had outstanding a $1,000,000, 8% bond issued in 2012 that was convertible to 21,000 common shares. The company also had outstanding a $1,000,000, 7% bond issued in 2013 that was convertible to 26,000 common shares. No dividends were declared or paid this year. Blossom's tax rate is 38%.

Blossom Inc. had net income for the current year ending December 31, 2023 of $1,230,480. During the entire year, there were 506,000 common shares outstanding. The company had two classes of preferred shares outstanding: the Class A preferred shares were $2.62 cumulative shares of which 10,000 were outstanding, and were convertible to common shares at a rate of 1:1. There were 102,000 $5.62 Class B non-cumulative preferred shares outstanding that were also convertible at a rate of 1:1. Blossom had outstanding a $1,000,000, 8% bond issued in 2012 that was convertible to 21,000 common shares. The company also had outstanding a $1,000,000, 7% bond issued in 2013 that was convertible to 26,000 common shares. No dividends were declared or paid this year. Blossom's tax rate is 38%.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ee 494.

Blossom Inc. had net income for the current year ending December 31, 2023 of $1,230,480. During the entire year, there were 506,000 common shares outstanding. The company had two classes of preferred shares outstanding: the Class A preferred shares were $2.62 cumulative shares of which 10,000 were outstanding, and were convertible to common shares at a rate of 1:1. There were 102,000 $5.62 Class B non-cumulative preferred shares outstanding that were also convertible at a rate of 1:1. Blossom had outstanding a $1,000,000, 8% bond issued in 2012 that was convertible to 21,000 common shares. The company also had outstanding a $1,000,000, 7% bond issued in 2013 that was convertible to 26,000 common shares. No dividends were declared or paid this year. Blossom's tax rate is 38%.
Transcribed Image Text:Blossom Inc. had net income for the current year ending December 31, 2023 of $1,230,480. During the entire year, there were 506,000 common shares outstanding. The company had two classes of preferred shares outstanding: the Class A preferred shares were $2.62 cumulative shares of which 10,000 were outstanding, and were convertible to common shares at a rate of 1:1. There were 102,000 $5.62 Class B non-cumulative preferred shares outstanding that were also convertible at a rate of 1:1. Blossom had outstanding a $1,000,000, 8% bond issued in 2012 that was convertible to 21,000 common shares. The company also had outstanding a $1,000,000, 7% bond issued in 2013 that was convertible to 26,000 common shares. No dividends were declared or paid this year. Blossom's tax rate is 38%.
(e) Determine an incremental per share effect for the 2012 bonds. (Round earnings per share to 3 decimal places, e.g. 15.257.) ement Potentially dilutive security 2012 Bonds $ Incremental Numerator Effect Incremental Denominator Effect EPS
Transcribed Image Text:(e) Determine an incremental per share effect for the 2012 bonds. (Round earnings per share to 3 decimal places, e.g. 15.257.) ement Potentially dilutive security 2012 Bonds $ Incremental Numerator Effect Incremental Denominator Effect EPS
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