Carla Vista Corporation had net income of $42,000 for the year ended December 31, 2023, and weighted average number of commonshares 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 convertibleinto 2 common shares. The preferred shares were issued at par and were outstanding the entire year. No shares wereconverted during the year.Calculate the basic earnings per share for 2023. (Round answer to 2 decimal places, e.g. 15.25.)Basic earnings per shareeTextbook and Media

The earnings per share (EPS) is the financial ratio that represents the portion of the net income…

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

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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