On January 1, 2024, Jaewoo Industries had outstanding 780,000 common shares ($1 par) that originally sold for $30 per share, and 9,000 shares of 10% cumulative preferred stock ($100 par), convertible into 90,000 common shares. ⚫ On October 1, 2024, Jaewoo sold and issued an additional 16,000 shares of common stock at $34. ⚫ At December 31, 2024, there were 28,000 incentive stock options outstanding, issued in 2023, and exercisable after one year for 28,000 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 $920,000. The tax rate for the year was 25%. Required: Compute basic and diluted EPS for the year ended December 31, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands (i.e., 10,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Basic Diluted Numerator ++ Denominator = Earnings per share =
On January 1, 2024, Jaewoo Industries had outstanding 780,000 common shares ($1 par) that originally sold for $30 per share, and 9,000 shares of 10% cumulative preferred stock ($100 par), convertible into 90,000 common shares. ⚫ On October 1, 2024, Jaewoo sold and issued an additional 16,000 shares of common stock at $34. ⚫ At December 31, 2024, there were 28,000 incentive stock options outstanding, issued in 2023, and exercisable after one year for 28,000 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 $920,000. The tax rate for the year was 25%. Required: Compute basic and diluted EPS for the year ended December 31, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands (i.e., 10,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Basic Diluted Numerator ++ Denominator = Earnings per share =
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
Related questions
Question
100%
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College