On January 1, 2020, Cullumber Inc. issued $2.4 million of face value, five-year, 8% bonds at par. Each $1,000 bond is convertible into 15 common shares. Cullumber's net income in 2020 was $240,000, and its tax rate was 30%. The company had 100,000 common shares outstanding throughout 2020. None of the bonds were exercised in 2020. Compute diluted earnings per share for 2020.

On January 1, 2020, Cullumber Inc. issued $2.4 million of face value, five-year, 8% bonds at par. Each $1,000 bond is convertible into 15 common shares. Cullumber's net income in 2020 was $240,000, and its tax rate was 30%. The company had 100,000 common shares outstanding throughout 2020. None of the bonds were exercised in 2020. Compute diluted earnings per share for 2020.

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 24P: Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1....

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