Calculate the basic earnings per share for 2023. (Round answer to 2 decimal places, e.g. 15.25.) Basic earnings per share $

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 2TP: Below is select information from two, independent companies. Additional information includes: On...
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Carla Vista Corporation had net income of $42,000 for the year ended December 31, 2023, and weighted average number of common
shares outstanding of 10,000. The following information is provided regarding the capital structure:
1.
2.
(a1)
(a2)
8% convertible debt, 210 bonds each convertible into 43 common shares. The bonds were outstanding for the entire year.
The income tax rate is 35%. The bonds were issued at par ($1,150 per bond). No bonds were converted during the year.
3% convertible, cumulative $100 preferred shares, 1,000 shares issued and outstanding. Each preferred share is convertible
into 2 common shares. The preferred shares were issued at par and were outstanding the entire year. No shares were
converted during the year.
Calculate the basic earnings per share for 2023. (Round answer to 2 decimal places, e.g. 15.25.)
Basic earnings per share
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Transcribed Image Text:Carla Vista Corporation had net income of $42,000 for the year ended December 31, 2023, and weighted average number of common shares outstanding of 10,000. The following information is provided regarding the capital structure: 1. 2. (a1) (a2) 8% convertible debt, 210 bonds each convertible into 43 common shares. The bonds were outstanding for the entire year. The income tax rate is 35%. The bonds were issued at par ($1,150 per bond). No bonds were converted during the year. 3% convertible, cumulative $100 preferred shares, 1,000 shares issued and outstanding. Each preferred share is convertible into 2 common shares. The preferred shares were issued at par and were outstanding the entire year. No shares were converted during the year. Calculate the basic earnings per share for 2023. (Round answer to 2 decimal places, e.g. 15.25.) Basic earnings per share eTextbook and Media
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