On January 1, 2021, Tonge Industries had outstanding 760,000 common shares ($1 par) that originally sold for $25 per share, and 8,000 shares of 10% cumulative preferred stock ($100 par), convertible into 80,000 common shares. On October 1, 2021, Tonge sold and issued an additional 12, 000 shares of common stock at $32. At December 31, 2021, there were 27.000 incentive stock options outstanding, issued in 2020, and exercisable after one year for 27, 000 shares of common stock at an exercise price of $35. The market price of the common stock at year-end was $53. During the year, the price of the common shares had averaged $45. Net income was $900,000. 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 (i.e., 100,000 should be entered as 100). Round “Earnings per share” answers to 2 decimal places.) Numerator / Denominator = Earnings per share Basic __________ / ____________ = _______________ Diluted __________ ____________ _______________
On January 1, 2021, Tonge Industries had outstanding 760,000 common shares ($1 par) that originally sold for $25 per share, and 8,000 shares of 10% cumulative preferred stock ($100 par), convertible into 80,000 common shares.
On October 1, 2021, Tonge sold and issued an additional 12, 000 shares of common stock at $32. At December 31, 2021, there were 27.000 incentive stock options outstanding, issued in 2020, and exercisable after one year for 27, 000 shares of common stock at an exercise price of $35. The market price of the common stock at year-end was $53. During the year, the price of the common shares had averaged $45.
Net income was $900,000. 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 (i.e., 100,000 should be entered as 100). Round “Earnings per share” answers to 2 decimal places.)
Numerator / Denominator = Earnings per share
Basic __________ / ____________ = _______________
Diluted __________ ____________ _______________
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