On June 1, 2023, Oriole Company and Waterway Company merged to form Wildhorse Inc. A total of 725,000 shares wer complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2025, the company issued an additional 616,000 shares of stock for cash. All 1,341,000 shares were outstand December 31, 2025. Wildhorse Inc. also issued $600,000 of 20-year, 8% convertible bonds at par on July 1, 2025. Each $1,000 bond converts of common at any interest date. None of the bonds have been converted to date. Wildhorse Inc. is preparing its annual report for the fiscal year ending December 31, 2025. The annual report will show e share figures based upon a reported after-tax net income of $1,592,000. (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 O decimal places, e.g. 2,500.) 1. Basic earnings per share $
On June 1,2023 , Oriole Company and Waterway Company merged to form Wildhorse Inc. A total of 725,000 shares we complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2025, the company issued an additional 616,000 shares of stock for cash. All 1,341,000 shares were outstanc December 31, 2025. Wildhorse Inc. also issued $600,000 of 20 -year, 8% convertible bonds at par on July 1,2025 . Each $1,000 bond converts of common at any interest date. None of the bonds have been converted to date. Wildhorse Inc. is preparing its annual report for the fiscal year ending December 31, 2025. The annual report will show share figures based upon a reported after-tax net income of $1,592,000. (The tax rate is 20%.) Determine the following for 2025. a. The number of shares to be used for calculating: (Round answers to 0 decimal places, e.g. 2,500.) Basic earnings per share shares Diluted earnings per share shares b. The earnings figures to be used for calculating: (Round answers to 0 decimal places, e.g. 2,500.) Basic earnings per share $
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