During 2021, Handley Financial Corporation had the following trading investment transactions: Feb. 1 Mar. 1 Apr. 1 July 1 Aug 1 Oct. 1 1 Dec. 30 Dec. 31 Purchased 660 CBF common shares for $41,580. Purchased 830 RSD common shares for $27,390. Purchased 7% MRT bonds at face value, for $58,200. Handley received interest fro April 1 and October 1. Received a cash dividend of $3 per share on the CBF common shares. Sold 190 CBF common shares at $61 per share. Received the semi-annual interest on the MRT bonds. Sold the MRT bonds for $60,400. RSD declared a dividend of $1.60 per share, payable on January 15 next year. The market prices of the CBF and RSD common shares were $58 and $34 per share

Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1. Net income for 2019: 150,500. 2. Bonds payable: On January 1, 2019, the company had issued 10%, 200,000 bonds at 110. The premium is being amortized in the amount of 1,000 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 3. Bonds payable: On December 31, 2017, the company had issued 540,000 of 5.8% bonds at par. Each 1,000 bond is currently convertible into 11.6 shares of common stock. To date, no bonds have been converted. 4. Preferred stock: On July 3, 2018, the company had issued 3,800 shares of 7.5%, 100 par, preferred stock at 108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid. 5. Common stock: At the beginning of 2019, 25,000 shares were outstanding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared and issued. On November 30, 2,000 shares were reacquired as treasury stock. 6. Compensatory share options: Options to acquire common stock at a price of 33 per share were outstanding during all of 2019. Currently, 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compens Frost Company has accumulated the following information relevant to its 2019 earnings ns is 5 per share. 7. Miscellaneous: Stock market prices on common stock averaged 41 per share during 2019, and the 2019 ending stock market price was 40 per share. The corporate income tax rate is 30%. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Indicate which earnings per share figure(s) Frost would report on its 2019 income statement.

Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.

During 2021, Paver Financial Corporation had the following trading investment transactions: Feb. 1   Purchased 560 CBF common shares for $35,280. Mar. 1   Purchased 750 RSD common shares for $21,750. Apr. 1   Purchased 7% MRT bonds at face value, for $56,000. Paver received interest from these bonds semi-annually on April 1 and October 1. July 1   Received a cash dividend of $3 per share on the CBF common shares. Aug. 1   Sold 180 CBF common shares at $62 per share. Oct. 1   Received the semi-annual interest on the MRT bonds.   1   Sold the MRT bonds for $57,900. Dec. 30   RSD declared a dividend of $1.60 per share, payable on January 15 next year. Dec. 31   The market prices of the CBF and RSD common shares were $59 and $30 per share, respectively. Determine the balance in each of the statement of income accounts that is affected in the transactions above and indicate how the accounts would be presented on the statement of income for the year ended December…