On January 1, 2023, Blue Corp. had 182,000 common shares outstanding. On April 1, 2023, 18,200 common shares were issued a on September 1, 2023, Blue bought back 28,200 treasury shares. The market price of the common shares averaged $50 during 201 The corporation's income tax rate is 40%. During 2023, there were 28,200 call options to buy common shares at $40 a share outstanding; and there were 18,200, $8, no par value, cumulative and convertible preferred shares outstanding. Each preferred share is convertible into three common shares. During 2022, the corporation had issued $2,020,000 of 9% convertible bonds at face value. Each $1,000 bond is convertible into 2 common shares. The corporation reported $729,000 net income for calendar 2023. Calculate diluted earnings per share for 2023. Complete the schedule below. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round earnings per share to 2 decimal places, e.g. 52.75.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Shares
Adjustment
Adjusted Shares
LA
EPS
Transcribed Image Text:Shares Adjustment Adjusted Shares LA EPS
On January 1, 2023, Blue Corp. had 182,000 common shares outstanding. On April 1, 2023, 18,200 common shares were issued and
on September 1, 2023, Blue bought back 28,200 treasury shares. The market price of the common shares averaged $50 during 2023.
The corporation's income tax rate is 40%.
During 2023, there were 28,200 call options to buy common shares at $40 a share outstanding; and there were 18,200, $8, no par
value, cumulative and convertible preferred shares outstanding. Each preferred share is convertible into three common shares.
During 2022, the corporation had issued $2,020,000 of 9% convertible bonds at face value. Each $1,000 bond is convertible into 20
common shares.
The corporation reported $729,000 net income for calendar 2023.
Calculate diluted earnings per share for 2023. Complete the schedule below. (Enter negative amounts using either a negative sign
preceding the number e.g. -45 or parentheses e.g. (45). Round earnings per share to 2 decimal places, e.g. 52.75.)
Security
Common shares
Options
Preferred
Bonds
Net Income
Adjustment
Adjusted
Net Income
Share
Transcribed Image Text:On January 1, 2023, Blue Corp. had 182,000 common shares outstanding. On April 1, 2023, 18,200 common shares were issued and on September 1, 2023, Blue bought back 28,200 treasury shares. The market price of the common shares averaged $50 during 2023. The corporation's income tax rate is 40%. During 2023, there were 28,200 call options to buy common shares at $40 a share outstanding; and there were 18,200, $8, no par value, cumulative and convertible preferred shares outstanding. Each preferred share is convertible into three common shares. During 2022, the corporation had issued $2,020,000 of 9% convertible bonds at face value. Each $1,000 bond is convertible into 20 common shares. The corporation reported $729,000 net income for calendar 2023. Calculate diluted earnings per share for 2023. Complete the schedule below. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round earnings per share to 2 decimal places, e.g. 52.75.) Security Common shares Options Preferred Bonds Net Income Adjustment Adjusted Net Income Share
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