Colt Corporation purchased Massey Inc. and agreed to give stockholders of Massey50,000 additional shares in 2027 if Massey's net income in 2026 is $600,000 ormore; in 2025 Massey's net income is $615,000. Colt has net income for 2025 of$1,500,000 and an average number of common shares outstanding of 500,000shares. What should Colt report as earnings per share for 2025?A) Basic Earnings Per Share - $2.73; Diluted Earnings Per Share - $3.00B) Basic Earnings Per Share - $3.00; Diluted Earnings Per Share - $2.73JC) Basic Earnings Per Share - $3.00; Diluted Earnings Per Share - $3.00D) Basic Earnings Per Share - $2.73; Diluted Earnings Per Share - $2.73

Earnings per share 2025 Basic Earning per share = Net income / average number of shares outstanding…

Answered: Colt Corporation purchased Massey Inc.…

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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Given the following information for Wilco Inc. (who is subject to a 10% tax rate), compute 2022 ROA: \table[[, 2022, 2021],[ Total Liabilities, $25,000,000, $23,000,000
Denver Co. owns 29,000 shares of common stock of Aspen Co. as an investment. The balance of this investment account at January 1, 2023 is $500,000 (already recorded). During 2023, Aspen Co. reported total Net Income of $3,000,000 and paid total dividends of $900,000 to all shareholders. At Dec. 31, 2023 the fair value of Aspen Co. stock was $24 per share. (memos not required) Assuming that the 29,000 shares represent a 2% interest in Aspen Co., prepare any entries that Denver Co. should make to account for its investment in Aspen Co. stock during 2023. Be sure to use proper form for journal entries by using spaces to show your debits and credits.
On August 15, 2021, EasyMoney, Inc.'s Board of Directors meets and declares that EasyMoney will pay a dividend to its stockholders. Each share of EasyMoney's Common Stock will be paid a dividend of $1.25 per share. There are currently 100,000 shares of EasyMoney's Common Stock held by EasyMoney's shareholders. The following are the facts related to this dividend: D Dividend per Share D Date of Declaration D Date of Record D Date of Payment $1.25 August 15, 2021 September 5, 2021 September 20, 2021 The following is a partial list of the accounts in EasyMoney, Inc.'s General Ledger. These are the only accounts you need for this problem. D Cash D Dividends Payable > Retained Earnings As of August 1, 2021, the Beginning Balance in the Dividends Payable account is $0 and the Beginning Balance in the Retained Earnings account is $625,000.
1. How much is the Ordinary Share Capital at year end? 2. How much is the Preference Share Capital at year end?
On May 1, 2020, ABC Corporation, a newly formed company had the following share capital issued and outstanding:· Ordinary share capital, P10 par, 20,000 shares originally issued for P30 per share. · Preference share capital, P100 par, 600 shares originally issued for P 500 per share. 21. What is the amount of Ordinary share capital that ABC Corporation should report in its May 1, 2020 statement of shareholder’s equity? a. 60,000 b. 200,000 c. 400,000 d. 640,000 22. Based on Item 21, what is the amount of Preference share capital that ABC Corporation should report in its May 1, 2020 statement of shareholder’s equity? a. 60,000 b. 200,000 c. 400,000 d. 640,000 23. Based on Item 21, what is the amount of additional paid in capital that ABC Corporation should report in its May 1, 2020 statement of shareholder’s equity? a. 200,000 b. 240,000 c. 400,000 d. 640,000 24. Based on Item 21, what is the amount of contributed…
On June 30, 2019, Haiti Company has 200,000 shares of P10 par ordinary share outstanding and the market price of the share is P12 per share. On the same date, the company declared a 1 for 2 share split. Immediately before the split, the total share premium was P900,000. What should be the balance in Haiti’s Share Premium account after the share split is effected?
on 1/1/20, ABC Corp bought 500 shares of XYZ Corp for $10,000. XYZ Corp has 25,000 shares outstanding. on 6/1/20, XYZ pays a $100,000 cash dividend to all shareholders. On 12/31/20, XYZ is trading at $22/share and during 2020 XYZ reported net income of $250,000. What is the total effect on net income for ABC from this investment? Assume ABC reports annually on a calendar year basis.
On August 15, 2021, EasyMoney, Inc.'s Board of Directors meets and declares that EasyMoney will pay a dividend to its stockholders. Each share of EasyMoney's Common Stock will be paid a dividend of $1.25 per share. There are currently 100,000 shares of EasyMoney's Common Stock held by EasyMoney's shareholders. The following are the facts related to this dividend: D Dividend per Share D Date of Declaration D Date of Record D Date of Payment $1.25 August 15, 2021 September 5, 2021 September 20, 2021 The following is a partial list of the accounts in EasyMoney, Inc.'s General Ledger. These are the only accounts you need for this problem. D Cash D Dividends Payable > Retained Earnings As of August 1, 2021, the Beginning Balance in the Dividends Payable account is $0 and the Beginning Balance in the Retained Earnings account is $625,000.
At 31 December 2019, B Plc had post-tax profits was $2,500,000 and had an issued share capital of $2,000,000 comprising 2,000,000 ordinary shares of 50p each and 1,000,000 $1 10% preference shares that are classified as equity. Assume that the post-tax profits for 2018 and 2019 were same at $ 2,500,000. The time-weighted number of shares was as follows: No. of Shares Shares (nominal value 50p) in issue at 01 January 2019 2,000,000 Shares issued for cash at market price on 30 September 2019 1,000,000 On 30 September 2019, B plc made a right issue of one share for every two shares (i.e one new share for every two shares held) at $3.25 per share. The following information is also given for B Plc as at 31 December 2019: Share option in existence 1,000,000 shares issuable in 2020 at $3.25 per share. An average market price per share of $4%; 1. Convertible 8% preference shares of $1 each totaling $2,000,000 convertible at one ordinary share for every five convertible preference shares. 2.…
Required: How much is the Ordinary Share Capital at year end?* How much is the Preference Share Capital at year end?* How much is the TOTAL subscribed share capital (assuming subscriptions receivable is collectible on January 5, 2022)?*
3. How much is the TOTAL subscribed share capital (assuming subscriptions receivable is collectible on January 5, 2022)? 4. How much is the TOTAL share premium?

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