In 2022, Crane Ltd. issued $48,000 of 8% bonds at par, with each $1,000 bond being convertible into 100 common shares. The company had revenues of $71,700 and expenses of $41,700 for 2023, not including interest and tax. (Assume a tax rate of 25%.) Throughout 2023, 1,200 common shares were outstanding, and none of the bonds were converted or redeemed. (For simplicity, assume that the convertible bonds' equity element is not recorded.) (a) Your answer is correct. Calculate income available to common shareholders. Income available to common shareholders (b) eTextbook and Media 19620 Diluted earnings per share $ Attempts: 1 of 3 used Calculate diluted earnings per share for the year ended December 31, 2023. For simplicity, ignore the requirement to record the bonds' debt and equity components separately. The bonds are assumed to be converted for the entire year. (Round answer to 2 decimal places, e.g. 15.25.)
In 2022, Crane Ltd. issued $48,000 of 8% bonds at par, with each $1,000 bond being convertible into 100 common shares. The company had revenues of $71,700 and expenses of $41,700 for 2023, not including interest and tax. (Assume a tax rate of 25%.) Throughout 2023, 1,200 common shares were outstanding, and none of the bonds were converted or redeemed. (For simplicity, assume that the convertible bonds' equity element is not recorded.) (a) Your answer is correct. Calculate income available to common shareholders. Income available to common shareholders (b) eTextbook and Media 19620 Diluted earnings per share $ Attempts: 1 of 3 used Calculate diluted earnings per share for the year ended December 31, 2023. For simplicity, ignore the requirement to record the bonds' debt and equity components separately. The bonds are assumed to be converted for the entire year. (Round answer to 2 decimal places, e.g. 15.25.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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am.101.
Transcribed Image Text:In 2022, Crane Ltd. issued $48,000 of 8% bonds at par, with each $1,000 bond being convertible into 100 common shares. The
company had revenues of $71,700 and expenses of $41,700 for 2023, not including interest and tax. (Assume a tax rate of
25%.) Throughout 2023, 1,200 common shares were outstanding, and none of the bonds were converted or redeemed. (For
simplicity, assume that the convertible bonds' equity element is not recorded.)
(a)
Your answer is correct.
Calculate income available to common shareholders.
Income available to common shareholders
(b)
e Textbook and Media
19620
Attempts: 1 of 3 used
Calculate diluted earnings per share for the year ended December 31, 2023. For simplicity, ignore the requirement to
record the bonds' debt and equity components separately. The bonds are assumed to be converted for the entire year.
(Round answer to 2 decimal places, e.g. 15.25.)
Diluted earnings per share $
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