In 2024, Splish Enterprises issued, at par, 60 $1,000, 8% bonds, each convertible into 100 shares of common stock. Splish had revenues of $20,600 and expenses other than interest and taxes of $8,000 for 2025. (Assume that the tax rate is 20%) Throughout 2025, 1,900 shares of common stock were outstanding: none of the bonds was converted or redeemed. (a) Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, eg. 2.55.) Earnings per share S (b) Assume the same facts as those assumed for part (a), except that the 60 bonds were issued on September 1, 2025 (rather than in 2024), and none have been converted or redeemed. Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, eg. 2.55) Earnings per share
In 2024, Splish Enterprises issued, at par, 60 $1,000, 8% bonds, each convertible into 100 shares of common stock. Splish had revenues of $20,600 and expenses other than interest and taxes of $8,000 for 2025. (Assume that the tax rate is 20%) Throughout 2025, 1,900 shares of common stock were outstanding: none of the bonds was converted or redeemed. (a) Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, eg. 2.55.) Earnings per share S (b) Assume the same facts as those assumed for part (a), except that the 60 bonds were issued on September 1, 2025 (rather than in 2024), and none have been converted or redeemed. Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, eg. 2.55) Earnings per share
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acc
Transcribed Image Text:In 2024, Splish Enterprises issued, at par, 60 $1,000, 8% bonds, each convertible into 100 shares of common stock. Splish had revenues
of $20,600 and expenses other than interest and taxes of $8,000 for 2025, (Assume that the tax rate is 20%.) Throughout
2025, 1,900 shares of common stock were outstanding: none of the bonds was converted or redeemed.
(a) Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.)
Earnings per share
(b) Assume the same facts as those assumed for part (a), except that the 60 bonds were issued on September 1, 2025 (rather than i
2024), and none have been converted or redeemed. Compute diluted earnings per share for 2025. (Round answer to 2 decimal places,
eg. 2.55.)
Earnings per share
$
(c) Assume the same facts as assumed for part (a), except that 20 of the 60 bonds were actually converted on July 1, 2025. Compute
diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.)
Earnings per share.
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