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he Sweet Corporation issued 10-year, $ 5,270,000 par,  6% callable convertible subordinated debentures on January 2, 2020. The bonds have a par value of $1,000, with interest payable annually. The current conversion ratio is  13:1, and in 2 years it will increase to  19:1. At the date of issue, the bonds were sold at  96. Bond discount is amortized on a straight-line basis. Sweet’s effective tax was  20%. Net income in 2020 was $ 8,800,000, and the company had  1,985,000 shares outstanding during the entire year. Compute both basic and diluted earnings per share. (Round answers to 2 decimal places, e.g. $2.55.) Basic earnings per share   $ Diluted earnings per share   $

he Sweet Corporation issued 10-year, $ 5,270,000 par,  6% callable convertible subordinated debentures on January 2, 2020. The bonds have a par value of $1,000, with interest payable annually. The current conversion ratio is  13:1, and in 2 years it will increase to  19:1. At the date of issue, the bonds were sold at  96. Bond discount is amortized on a straight-line basis. Sweet’s effective tax was  20%. Net income in 2020 was $ 8,800,000, and the company had  1,985,000 shares outstanding during the entire year. Compute both basic and diluted earnings per share. (Round answers to 2 decimal places, e.g. $2.55.) Basic earnings per share   $ Diluted earnings per share   $

FINANCIAL ACCOUNTING
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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The Sweet Corporation issued 10-year, $ 5,270,000 par,  6% callable convertible subordinated debentures on January 2, 2020. The bonds have a par value of $1,000, with interest payable annually. The current conversion ratio is  13:1, and in 2 years it will increase to  19:1. At the date of issue, the bonds were sold at  96. Bond discount is amortized on a straight-line basis. Sweet’s effective tax was  20%. Net income in 2020 was $ 8,800,000, and the company had  1,985,000 shares outstanding during the entire year.

Compute both basic and diluted earnings per share. (Round answers to 2 decimal places, e.g. $2.55.)

Basic earnings per share  
$
Diluted earnings per share  
$
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