Problem 19-17 (Static) 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 440,000 common shares ($1 par) that originally sold for $20 per share, and 4,000 shares of 10% cumulative preferred stock ($100 par), convertible into 40,000 common shares. • On October 1, 2024, Jaewoo sold and issued an additional 16,000 shares of common stock at $33. • At December 31, 2024, there were 20,000 incentive stock options outstanding, issued in 2023, and exercisable after one year for 20,000 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 $650,000. 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.
Problem 19-17 (Static) 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 440,000 common shares ($1 par) that originally sold for $20 per share, and 4,000 shares of 10% cumulative preferred stock ($100 par), convertible into 40,000 common shares. • On October 1, 2024, Jaewoo sold and issued an additional 16,000 shares of common stock at $33. • At December 31, 2024, there were 20,000 incentive stock options outstanding, issued in 2023, and exercisable after one year for 20,000 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 $650,000. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject : Accounting
![Problem 19-17 (Static) 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 440,000 common shares ($1 par) that originally sold for $20 per share, and
4,000 shares of 10% cumulative preferred stock ($100 par), convertible into 40,000 common shares.
. On October 1, 2024, Jaewoo sold and issued an additional 16,000 shares of common stock at $33.
• At December 31, 2024, there were 20,000 incentive stock options outstanding, issued in 2023, and exercisable after one year
for 20,000 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 $650,000. 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
X
2 decimal places required.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8fc66754-dc05-453a-a4c8-c79196bcb5d1%2F59fb91d0-1627-4408-8c83-283ff8fa020c%2Fcxnsjmp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 19-17 (Static) 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 440,000 common shares ($1 par) that originally sold for $20 per share, and
4,000 shares of 10% cumulative preferred stock ($100 par), convertible into 40,000 common shares.
. On October 1, 2024, Jaewoo sold and issued an additional 16,000 shares of common stock at $33.
• At December 31, 2024, there were 20,000 incentive stock options outstanding, issued in 2023, and exercisable after one year
for 20,000 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 $650,000. 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
X
2 decimal places required.
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