nformation from the financial statements of Ames Fabricators, Inc., included the following: Common shares. Convertible preferred shares (convertible into 42,000 shares of common) 14,400 14,400 8% convertible bonds (convertible into 30,000 shares of common) $1,000,000 $1,000,000 Basic Diluted Ames's net income for the year ended December 31, 2021, is $540,000. The income tax rate is 25%. Ames paid dividends of $5 per share on its preferred stock during 2021. Numerator 1 1 1 December 31 Required: Compute basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands (For example, 100,000 should be entered as 100). Do not round intermediate calculations.) Denominator = 2021 100,000 = 2020 100,000 Earnings per Share
nformation from the financial statements of Ames Fabricators, Inc., included the following: Common shares. Convertible preferred shares (convertible into 42,000 shares of common) 14,400 14,400 8% convertible bonds (convertible into 30,000 shares of common) $1,000,000 $1,000,000 Basic Diluted Ames's net income for the year ended December 31, 2021, is $540,000. The income tax rate is 25%. Ames paid dividends of $5 per share on its preferred stock during 2021. Numerator 1 1 1 December 31 Required: Compute basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands (For example, 100,000 should be entered as 100). Do not round intermediate calculations.) Denominator = 2021 100,000 = 2020 100,000 Earnings per Share
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 24E
Related questions
Question
100%
![Information from the financial statements of Ames Fabricators, Inc., included the following:
Common shares
Convertible preferred shares (convertible into 42,000 shares of
common)
14,400
8% convertible bonds (convertible into 30,000 shares of common) $1,000,000
Basic
Diluted
December 31
Numerator I Denominator =
7
/
2021
100,000
Ames's net income for the year ended December 31, 2021, is $540,000. The income tax rate is 25%. Ames paid dividends of $5 per
share on its preferred stock during 2021.
=
Required:
Compute basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands (For
example, 100,000 should be entered as 100). Do not round intermediate calculations.)
Earnings per Share
2020
100,000
14,400
$1,000,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe890579c-94a4-423d-91dd-4fb21feea66a%2F206727e9-e1d9-4724-8754-ebecc71501ce%2Ft5doe9_processed.png&w=3840&q=75)
Transcribed Image Text:Information from the financial statements of Ames Fabricators, Inc., included the following:
Common shares
Convertible preferred shares (convertible into 42,000 shares of
common)
14,400
8% convertible bonds (convertible into 30,000 shares of common) $1,000,000
Basic
Diluted
December 31
Numerator I Denominator =
7
/
2021
100,000
Ames's net income for the year ended December 31, 2021, is $540,000. The income tax rate is 25%. Ames paid dividends of $5 per
share on its preferred stock during 2021.
=
Required:
Compute basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands (For
example, 100,000 should be entered as 100). Do not round intermediate calculations.)
Earnings per Share
2020
100,000
14,400
$1,000,000
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
![Corporate Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781305653535/9781305653535_smallCoverImage.gif)
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
![Corporate Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781305653535/9781305653535_smallCoverImage.gif)
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![Accounting (Text Only)](https://www.bartleby.com/isbn_cover_images/9781285743615/9781285743615_smallCoverImage.gif)
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning