Thomas Limited's net income for the year ended December 31, 2023 was $550,360 and there were 96,000 common shares outstanding during the entire year. Thomas has the following two convertible securities outstanding: 10% convertible bonds (each $1,000 bond is convertible into 20 common shares) $200,000 5% convertible $100 par value cumulative preferred shares (each share is convertible into two common shares) $140,000 Both convertible securities were issued at face value in 2020. There were no conversions during 2023, and Thomas's income tax rate is 25%. Calculate diluted earnings per share. (Round calculations of EPS to 3 decimal places, e.g. 3.545 and provide final answer to 2 decimal places, e.g. 15.25.) Basic Item 5% Pref. Sub-total 10% Bonds Total Diluted EPS V $ NI Common Shares SA $ EPS
Thomas Limited's net income for the year ended December 31, 2023 was $550,360 and there were 96,000 common shares outstanding during the entire year. Thomas has the following two convertible securities outstanding: 10% convertible bonds (each $1,000 bond is convertible into 20 common shares) $200,000 5% convertible $100 par value cumulative preferred shares (each share is convertible into two common shares) $140,000 Both convertible securities were issued at face value in 2020. There were no conversions during 2023, and Thomas's income tax rate is 25%. Calculate diluted earnings per share. (Round calculations of EPS to 3 decimal places, e.g. 3.545 and provide final answer to 2 decimal places, e.g. 15.25.) Basic Item 5% Pref. Sub-total 10% Bonds Total Diluted EPS V $ NI Common Shares SA $ EPS
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Thomas Limited's net income for the year ended December 31, 2023 was $550,360 and there were 96,000 common shares
outstanding during the entire year. Thomas has the following two convertible securities outstanding:
10% convertible bonds (each $1,000 bond is convertible into 20 common shares)
$200,000
5% convertible $100 par value cumulative preferred shares (each share is convertible into two common shares) $140,000
Both convertible securities were issued at face value in 2020. There were no conversions during 2023, and Thomas's income tax rate
is 25%.
Calculate diluted earnings per share. (Round calculations of EPS to 3 decimal places, e.g. 3.545 and provide final answer to 2 decimal
places, e.g. 15.25.)
Basic
Item
5% Pref.
Sub-total
10% Bonds
Total
Diluted EPS
V
$
NI
Common Shares
SA
$
EPS
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