The following separate income statements are for Burks Company and its 80 percent-owned subsidiary, Foreman Company:RevenuesExpensesGain on sale of equipmentEquity earnings of subsidiaryNet incomeOutstanding common sharesAdditional InformationBurksS$(412,000)322,000Foreman0(58,000(148,000)56,000)$ (312,000 )231,000(21,000)$ (102,000)35,000• Amortization expense resulting from Foreman's excess acquisition-date fair value is $26,000 per year.• Burks has convertible preferred stock outstanding. Each of these 6,000 shares is paid a dividend of $6 per year. Each share can be converted into six shares of commonstock.• Stock warrants to buy 15,000 shares of Foreman are also outstanding. For $15, each warrant can be converted into a share of Foreman's common stock. The fair value ofthis stock is $25 throughout the year. Burks owns none of these warrants.• Foreman has convertible bonds payable that paid interest of $36,000 (after taxes) during the year. These bonds can be exchanged for 12,500 shares of common stock.Burks holds 20 percent of these bonds, which it bought at book value directly from Foreman.Compute basic and diluted EPS for Burks Company. (Round your intermediate percentage value and final answer to 2 decimal places.) BasicDilutedEarnings Per Share

Basic EPSBasic earnings per share is a rough measurement of the amount of a company's profit that…

Answered: percent of these bonds, WHI book value…

FINANCIAL ACCOUNTING

10th Edition

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Author:Libby

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Chapter1: Financial Statements And Business Decisions

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Bond Investment TransactionsJournalize the entries to record the following selected bond investment transactions for Starks Products:For a compound transaction, if an amount box does not require an entry, leave it blank.a. Purchased for cash $72,000 of Iceline, Inc. 9% bonds at 100 plus accrued interest of $1,080, paying interest semiannually. b. Received first semiannual interest payment. c. Sold $48,000 of the bonds at 103 plus accrued interest of $550.
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On March 1, Wayne, Michaels bought 10 bonds from a particular company with a coupon rate of 9.725%. the purchase price was 87.875 and the commission was $7 per bond. I bonds from this particular company pay interest on February 1 and August 1. A-what is the current yield as a percent of the bond as the purchase date round your answer to one decimal place? (I got 11.07 it was correct) B-what is the total purchase price in dollars of the bonds round your answer to the nearest cent? ( I got $893.85 it was wrong ) C-if Wayne sold the bonds on November 1 for 92.875 what are the proceeds in dollars from the sale round your answer to the nearest cent?( I got 110.1875 it was wrong )
On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.725%. The purchase price was 89.875, and the commission was $7 per bond. Bonds from this particular company pay interest on February 1 and August 1. (a) What is the current yield (as a %) of the bond as of the purchase date? (Round your answer to one decimal place.) (b) What is the total purchase price (in $) of the bonds? (c) If Wayne sold the bonds on November 1 for 94.875, what are the proceeds (in $) from the sale?
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percent of these bonds, WHI book value directly from Foreman. Compute basic and diluted EPS for Burks Company. (Round your intermediate percentage value and final answer to 2 decimal places.)