On June 1, 2023, Concord Company and Marigold Company merged to form Swifty Inc. A total of 870,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2025, the company issued an additional 577,000 shares of stock for cash. All 1,447,000 shares were outstanding on December 31, 2025. Swifty Inc. also issued $600,000 of 20-year, 9% convertible bonds at par on July 1, 2025. Each $1,000 bond converts to 40 shares of common at any interest date. None of the bonds have been converted to date. Swifty Inc. is preparing its annual report for the fiscal year ending December 31, 2025. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,560,000. (The tax rate is 20%.) Determine the following for 2025. a. The number of shares to be used for calculating: (Round answers to O decimal places, e.g. 2,500.) 1. Basic earnings per share 2. Diluted earnings per share shares shares b. The earnings figures to be used for calculating: (Round answers to 0 decimal places, e.g. 2,500.) 1. Basic earnings per share $ 2. Diluted earnings per share $

On June 1, 2023, Concord Company and Marigold Company merged to form Swifty Inc. A total of 870,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2025, the company issued an additional 577,000 shares of stock for cash. All 1,447,000 shares were outstanding on December 31, 2025. Swifty Inc. also issued $600,000 of 20-year, 9% convertible bonds at par on July 1, 2025. Each $1,000 bond converts to 40 shares of common at any interest date. None of the bonds have been converted to date. Swifty Inc. is preparing its annual report for the fiscal year ending December 31, 2025. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,560,000. (The tax rate is 20%.) Determine the following for 2025. a. The number of shares to be used for calculating: (Round answers to O decimal places, e.g. 2,500.) 1. Basic earnings per share 2. Diluted earnings per share shares shares b. The earnings figures to be used for calculating: (Round answers to 0 decimal places, e.g. 2,500.) 1. Basic earnings per share $ 2. Diluted 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 26E: Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of...

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Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000
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On June 1, 2023, Concord Company and Marigold Company merged to form Swifty Inc. A total 870,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2025, the company issued an additional 577,000 shares of stock for cash. All 1,447,000 shares were outstanding on December 31, 2025. Swifty Inc. also issued $600,000 of 20-year, 9% convertible bonds at par on July 1, 2025. Each $1,000 band converts to 40 shares of common at any interest date. None of the bonds have been converted to date. Swifty Inc. is preparing its annual report for the fiscal year ending December 31, 2025. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,564,000. (The tax rate is 20%) Determine the following for 2025. a. The number of shares to be used for calculating: (Round answers to O decimal places, eg. 2,500) 1. 2 1. Basic earnings per share 2 Diluted earnings per share b. The earnings figures to be used…
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