-On January 1, 2021, Bell Company had 2,000,000 shares of common stock outstanding and 60,000 shares of 6%, $100 par, cumulative preferred stock outstanding. On April 1, Bell purchased 36,000 shares of common stock as treasury stock for $30 per share. It sold 60,000 treasury shares on Nov. 1, at $45 per share. Net income for 2021 was $9,085,430. Also outstanding in 2021 were stock options giving executives the right to buy 60,000 common shares at $30. On January 1, the market price of the common shares was $35; on July 1, $40, and on December 31, $45. The company's tax rate is 40%. 5 million dollars of 6% bonds were issued at face value on January 1, 2021. Those bonds are convertible into common stock, in a ratio of 1:5 None of them had been converted by December 31 but on September 1, 40% of the stock options were exercised. Required: a. Showing your computations, present in good order Bell's earnings per share for 2021.

-On January 1, 2021, Bell Company had 2,000,000 shares of common stock outstanding and 60,000 shares of 6%, $100 par, cumulative preferred stock outstanding. On April 1, Bell purchased 36,000 shares of common stock as treasury stock for $30 per share. It sold 60,000 treasury shares on Nov. 1, at $45 per share. Net income for 2021 was $9,085,430. Also outstanding in 2021 were stock options giving executives the right to buy 60,000 common shares at $30. On January 1, the market price of the common shares was $35; on July 1, $40, and on December 31, $45. The company's tax rate is 40%. 5 million dollars of 6% bonds were issued at face value on January 1, 2021. Those bonds are convertible into common stock, in a ratio of 1:5 None of them had been converted by December 31 but on September 1, 40% of the stock options were exercised. Required: a. Showing your computations, present in good order Bell's earnings per share for 2021.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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