On January 1, 2024, Jaewoo Industries had outstanding 440,000 common shares ($1 par) that originally sold for $20 per share, and 4,000 shares of 10% cumulative preferred stock ($100 par), convertible into 40,000 common shares. On October 1, 2024, Jaewoo sold and issued an additional 16,000 shares of common stock at $33. At December 31, 2024, there were 20,000 incentive stock options outstanding, issued in 2023, and exercisable after one year for 20,000 shares of common stock at an exercise price of $30. The market price of the common stock at year-end was $48. During the year, the price of the common shares had averaged $40. Net income was $ 650,000. The tax rate for the year was 25 %. Required: Compute basic and diluted EPS for the year ended December 31, 2024.
On January 1, 2024, Jaewoo Industries had outstanding 440,000 common shares ($1 par) that originally sold for $20 per share, and 4,000 shares of 10% cumulative preferred stock ($100 par), convertible into 40,000 common shares. On October 1, 2024, Jaewoo sold and issued an additional 16,000 shares of common stock at $33. At December 31, 2024, there were 20,000 incentive stock options outstanding, issued in 2023, and exercisable after one year for 20,000 shares of common stock at an exercise price of $30. The market price of the common stock at year-end was $48. During the year, the price of the common shares had averaged $40. Net income was $ 650,000. The tax rate for the year was 25 %. Required: Compute basic and diluted EPS for the year ended December 31, 2024.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 10MC
Question
please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no
![On January 1, 2024, Jaewoo Industries had outstanding 440,000 common shares ($1 par) that originally sold for $20 per share, and 4,000 shares of 10% cumulative
preferred stock ($100 par), convertible into 40,000 common shares. On October 1, 2024, Jaewoo sold and issued an additional 16,000 shares of common stock at $33. At
December 31, 2024, there were 20,000 incentive stock options outstanding, issued in 2023, and exercisable after one year for 20,000 shares of common stock at an
exercise price of $30. The market price of the common stock at year-end was $48. During the year, the price of the common shares had averaged $40. Net income was $
650,000. The tax rate for the year was 25 %. Required: Compute basic and diluted EPS for the year ended December 31, 2024.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fedffe7a0-3186-4733-9c5f-be54571afe94%2Fe1aa8012-0aa0-47e2-938d-edc05348d2a7%2Fgamj3s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, 2024, Jaewoo Industries had outstanding 440,000 common shares ($1 par) that originally sold for $20 per share, and 4,000 shares of 10% cumulative
preferred stock ($100 par), convertible into 40,000 common shares. On October 1, 2024, Jaewoo sold and issued an additional 16,000 shares of common stock at $33. At
December 31, 2024, there were 20,000 incentive stock options outstanding, issued in 2023, and exercisable after one year for 20,000 shares of common stock at an
exercise price of $30. The market price of the common stock at year-end was $48. During the year, the price of the common shares had averaged $40. Net income was $
650,000. The tax rate for the year was 25 %. Required: Compute basic and diluted EPS for the year ended December 31, 2024.
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