Colt Corporation purchased Massey Inc. and agreed to give stockholders of Massey 50,000 additional shares in 2027 if Massey's net income in 2026 is $600,000 or more; 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 500,000 shares. What should Colt report as earnings per share for 2025? A) Basic Earnings Per Share - $2.73; Diluted Earnings Per Share - $3.00 B) Basic Earnings Per Share - $3.00; Diluted Earnings Per Share - $2.73 J C) Basic Earnings Per Share - $3.00; Diluted Earnings Per Share - $3.00 D) Basic Earnings Per Share - $2.73; Diluted Earnings Per Share - $2.73
Colt Corporation purchased Massey Inc. and agreed to give stockholders of Massey 50,000 additional shares in 2027 if Massey's net income in 2026 is $600,000 or more; 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 500,000 shares. What should Colt report as earnings per share for 2025? A) Basic Earnings Per Share - $2.73; Diluted Earnings Per Share - $3.00 B) Basic Earnings Per Share - $3.00; Diluted Earnings Per Share - $2.73 J C) Basic Earnings Per Share - $3.00; Diluted Earnings Per Share - $3.00 D) Basic Earnings Per Share - $2.73; Diluted Earnings Per Share - $2.73
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 8MC: Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde...
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![Colt Corporation purchased Massey Inc. and agreed to give stockholders of Massey
50,000 additional shares in 2027 if Massey's net income in 2026 is $600,000 or
more; 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 500,000
shares. What should Colt report as earnings per share for 2025?
A) Basic Earnings Per Share - $2.73; Diluted Earnings Per Share - $3.00
B) Basic Earnings Per Share - $3.00; Diluted Earnings Per Share - $2.73
J
C) Basic Earnings Per Share - $3.00; Diluted Earnings Per Share - $3.00
D) Basic Earnings Per Share - $2.73; Diluted Earnings Per Share - $2.73](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5671fc35-ba4a-4a75-8db1-115d164311c8%2Feaa9a5d6-5a49-4d15-892a-5bb906d28001%2F6x64h59_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Colt Corporation purchased Massey Inc. and agreed to give stockholders of Massey
50,000 additional shares in 2027 if Massey's net income in 2026 is $600,000 or
more; 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 500,000
shares. What should Colt report as earnings per share for 2025?
A) Basic Earnings Per Share - $2.73; Diluted Earnings Per Share - $3.00
B) Basic Earnings Per Share - $3.00; Diluted Earnings Per Share - $2.73
J
C) Basic Earnings Per Share - $3.00; Diluted Earnings Per Share - $3.00
D) Basic Earnings Per Share - $2.73; Diluted Earnings Per Share - $2.73
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