On January 1, 2021, Tonge Industries had outstanding 540,000 common shares ($1 par) that originally sold for $30 per share, and 3,000 shares of 10% cumulative preferred stock ($100 par), convertible into 30,000 common shares. On October 1, 2021, Tonge sold and issued an additional 20,000 shares of common stock at $43. At December 31, 2021, there were 25,000 incentive stock options outstanding, Issued in 2020, and exercisable after one year for 25,000 shares of common stock at an exercise price of $40. The market price of the common stock at year-end was $58. During the year, the price of the common shares had averaged $50. Net Income was $680,000. The tax rate for the year was 25%. Required: Compute basic and diluted EPS for the year ended December 31, 2021. (Enter your answers in thousands (.e., 100,000 should be entered as 100). Round "Earnings per share" answers to 2 decimal places.)

On January 1, 2021, Tonge Industries had outstanding 540,000 common shares ($1 par) that originally sold for $30 per share, and 3,000 shares of 10% cumulative preferred stock ($100 par), convertible into 30,000 common shares. On October 1, 2021, Tonge sold and issued an additional 20,000 shares of common stock at $43. At December 31, 2021, there were 25,000 incentive stock options outstanding, Issued in 2020, and exercisable after one year for 25,000 shares of common stock at an exercise price of $40. The market price of the common stock at year-end was $58. During the year, the price of the common shares had averaged $50. Net Income was $680,000. The tax rate for the year was 25%. Required: Compute basic and diluted EPS for the year ended December 31, 2021. (Enter your answers in thousands (.e., 100,000 should be entered as 100). Round "Earnings per share" answers to 2 decimal places.)

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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