Problem 19-17 (Algo) EPS; options; convertible preferred; additional shares [LO19-4, 19-5, 19-6, 19-7, 19- 8, 19-9] On January 1, 2024, Jaewoo Industries had outstanding 800,000 common shares ($1 par) that originally sold for $20 per share, and 3,000 shares of 10% cumulative preferred stock ($100 par), convertible into 30,000 common shares. . On October 1, 2024, Jaewoo sold and issued an additional 20,000 shares of common stock at $36. • 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 $940,000. 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 (.e., 10,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Basic Diluted $ S Numerator Answer is complete but not entirely correct. 910,000 O 910,000 Denominator 805,000 842,000 Earnings per share 1.13 1.10
Problem 19-17 (Algo) EPS; options; convertible preferred; additional shares [LO19-4, 19-5, 19-6, 19-7, 19- 8, 19-9] On January 1, 2024, Jaewoo Industries had outstanding 800,000 common shares ($1 par) that originally sold for $20 per share, and 3,000 shares of 10% cumulative preferred stock ($100 par), convertible into 30,000 common shares. . On October 1, 2024, Jaewoo sold and issued an additional 20,000 shares of common stock at $36. • 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 $940,000. 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 (.e., 10,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Basic Diluted $ S Numerator Answer is complete but not entirely correct. 910,000 O 910,000 Denominator 805,000 842,000 Earnings per share 1.13 1.10
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Pre
![Problem 19-17 (Algo) EPS; options; convertible preferred; additional shares [LO19-4, 19-5, 19-6, 19-7, 19-
8, 19-9]
On January 1, 2024, Jaewoo Industries had outstanding 800,000 common shares ($1 par) that originally sold for $20 per share, and
3,000 shares of 10% cumulative preferred stock ($100 par), convertible into 30,000 common shares.
. On October 1, 2024, Jaewoo sold and issued an additional 20,000 shares of common stock at $36.
• 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 $940,000. 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 (.e., 10,000 should
be entered as 10). Round "Earnings per share" answer to 2 decimal places.
Basic
Diluted
S
Numerator
Answer is complete but not entirely correct.
910,000-
910.000
Denominator
805,000 >=
842,000
Earnings per
share
1.13
1.10 x](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2ae5daf6-6f5e-4f6e-a956-2ff7f8da7363%2F9f4cbee3-f3da-40a3-9f45-b3fb1f4a0bc3%2Fpqu5mu5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 19-17 (Algo) EPS; options; convertible preferred; additional shares [LO19-4, 19-5, 19-6, 19-7, 19-
8, 19-9]
On January 1, 2024, Jaewoo Industries had outstanding 800,000 common shares ($1 par) that originally sold for $20 per share, and
3,000 shares of 10% cumulative preferred stock ($100 par), convertible into 30,000 common shares.
. On October 1, 2024, Jaewoo sold and issued an additional 20,000 shares of common stock at $36.
• 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 $940,000. 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 (.e., 10,000 should
be entered as 10). Round "Earnings per share" answer to 2 decimal places.
Basic
Diluted
S
Numerator
Answer is complete but not entirely correct.
910,000-
910.000
Denominator
805,000 >=
842,000
Earnings per
share
1.13
1.10 x
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education