[EPS] COMPUTING EPS WITH CONVERTIBLE DEBENTURES Pam Corporation has $ 108,000 income from its own operations for 2016. And $42,000 income from Sun Corporation, its 70 percent-owned subsidiary. Sun's net income of $60,000 consists of $66,000 operating income less $ 6,000 net-of tax interest on its outstanding 10 percent convertible debentures. Throughout 2016, Pam has 100,000 shares of common stock outstanding, and Sun has 50,000 outstanding common shares. REQUIRED: 1.Compute Pam's diluted earnings per share for 2016, assuming that Sun's bonds are convertible into 10,000 shares of Sun's common stock. 2.Compute Pam's diluted earnings per share for 2016, assuming that Sun's bonds are convertible into 10,000 shares of Pam's common stock.

[EPS] COMPUTING EPS WITH CONVERTIBLE DEBENTURES Pam Corporation has $ 108,000 income from its own operations for 2016. And $42,000 income from Sun Corporation, its 70 percent-owned subsidiary. Sun's net income of $60,000 consists of $66,000 operating income less $ 6,000 net-of tax interest on its outstanding 10 percent convertible debentures. Throughout 2016, Pam has 100,000 shares of common stock outstanding, and Sun has 50,000 outstanding common shares. REQUIRED: 1.Compute Pam's diluted earnings per share for 2016, assuming that Sun's bonds are convertible into 10,000 shares of Sun's common stock. 2.Compute Pam's diluted earnings per share for 2016, assuming that Sun's bonds are convertible into 10,000 shares of Pam's common stock.

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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H1.
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Investment in Equity Kalvin Co. acquired 15% of the 5,000,000 shares of common stock of Tops Co. at a cost of $8.50 per share on January 1, 2017. Tops Co. declared and paid a $250,000 cash dividend and reported net income of $685,000 for the year. On January 2, 2018, Kalvin sold these shares at a market price of $9.00 per share. Required: Prepare all necessary journal entries for 2017 and 2018.
Pat Company reported the following information on December 31, 2020. Determine the legal capital: * P230 000 80 500 525.000 275,000 5.000 Preference Share, P100 par Share Premium - Preference Ordinary Share, P15 par Share Premium- Ordinary Subscribed Ordinary Share Retained Earnings Notes Payable Subscription receivable- Ordinary 190,000 400,000 40,000 Your answer This is a required question
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12. Sina Company purchased 10,000 shares representing 2% ownership of Heyoon Company on February 15, 2018. Sina received a stock dividend of 2,000 shares on March 31, 2018, when the carrying amount per share on Heyoon’s books was P350 and the market value per share was P400. Heyoon paid a cash dividend of P15 per share on September 15, 2018. In Sina’s income statement for the year ended October 31, 2018, what amount should Sina report as dividend income?
14. PQ Corporation has 50,000 shares of P10 par ordinary shares authorized. The following transactions took place during 2015, the first year of the corporation’s existence: Sold 5,000 ordinary shares for P18 per share. Issued 5,000 ordinary shares in exchange for a patent valued at P100,000. At the end of the PQ’s first year, total contributed capital amounted to?
11
Subject: acc
Answer is c. $125,000 Please explain the reasoning and calculations
BARK Corporation acquired 10,000 Company shares on February 5, 2016 at P50 which include P10 per share broker's fees and commissions, A P50,000 cash dividends were received from MEOW Company on March 20, 2016. These dividends were declared on January 5 payable to shareholders as of February 10. MEOW Company shares were split 2 for 1 on November 1. The shares were selling at P32 per share on December 31, 2016. The investments were designated as FVPL. How much should be recognized as dividend income?