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Information concerning the capital structure of the Petrock Corporation is as follows: December 31, Common stock Convertible preferred stock 8%, $1,000 par, convertible bonds. 20X0 90,000 shares 10,000 shares $1,000,000 During 20X1, Petrock paid dividends of $1 per share on its common stock and $2.40 per share on its preferred stock. The preferred stock is convertible into 20,000 shares of common stock. The 8% convertible bonds are convertible into 30,000 shares of common stock. The net income for the year ending December 31, 20X1, was $285,000, and the company's income tax rate was 21%. Number of shares used in EPS computation Earnings used in EPS computation Earnings per share Required: 1. What was basic EPS for 20X1? 2. What was diluted EPS for 20X1? (For all requirements, round your answers for "Earnings per share" to 2 decimal places.) EPS for 20X1 20X1 90,000 shares 10,000 shares $1,000,000 Basic Diluted

Information concerning the capital structure of the Petrock Corporation is as follows: December 31, Common stock Convertible preferred stock 8%, $1,000 par, convertible bonds. 20X0 90,000 shares 10,000 shares $1,000,000 During 20X1, Petrock paid dividends of $1 per share on its common stock and $2.40 per share on its preferred stock. The preferred stock is convertible into 20,000 shares of common stock. The 8% convertible bonds are convertible into 30,000 shares of common stock. The net income for the year ending December 31, 20X1, was $285,000, and the company's income tax rate was 21%. Number of shares used in EPS computation Earnings used in EPS computation Earnings per share Required: 1. What was basic EPS for 20X1? 2. What was diluted EPS for 20X1? (For all requirements, round your answers for "Earnings per share" to 2 decimal places.) EPS for 20X1 20X1 90,000 shares 10,000 shares $1,000,000 Basic Diluted

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Information concerning the capital structure of the Petrock Corporation is as follows: December 31, Common stock Convertible preferred stock 8%, $1,000 par, convertible bonds Required: 1. What was basic EPS for 20X1? 2. What was diluted EPS for 20X1? 20X0 90,000 shares 10,000 shares $1,000,000 During 20X1, Petrock paid dividends of $1 per share on its common stock and $2.40 per share on its preferred stock. The preferred stock is convertible into 20,000 shares of common stock. The 8% convertible bonds are convertible into 30,000 shares of common stock. The net income for the year ending December 31, 20X1, was $285,000, and the company's income tax rate was 21%. Number of shares used in EPS computation Earnings used in EPS computation Earnings per share (For all requirements, round your answers for "Earnings per share" to 2 decimal places.) EPS for 20X1 20X1 90,000 shares 10,000 shares $1,000,000 Basic Diluted
Transcribed Image Text:Information concerning the capital structure of the Petrock Corporation is as follows: December 31, Common stock Convertible preferred stock 8%, $1,000 par, convertible bonds Required: 1. What was basic EPS for 20X1? 2. What was diluted EPS for 20X1? 20X0 90,000 shares 10,000 shares $1,000,000 During 20X1, Petrock paid dividends of $1 per share on its common stock and $2.40 per share on its preferred stock. The preferred stock is convertible into 20,000 shares of common stock. The 8% convertible bonds are convertible into 30,000 shares of common stock. The net income for the year ending December 31, 20X1, was $285,000, and the company's income tax rate was 21%. Number of shares used in EPS computation Earnings used in EPS computation Earnings per share (For all requirements, round your answers for "Earnings per share" to 2 decimal places.) EPS for 20X1 20X1 90,000 shares 10,000 shares $1,000,000 Basic Diluted
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