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
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
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
Expert Solution
steps

Step by step

Solved in 4 steps with 2 images

Blurred answer
Knowledge Booster
Earning per share and Dilutive securities
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education