Need help on how to solve for the Earnings per share ( EPS ) V. Colson Corp. had $800,000 net income in 2018. On January1, 2018 thereoutstanding. On April 1, 20,000 shares were issued and onSeptember 1, Colson bought_30,000 shares of treasury stock.There are 30,000 options to buy common stock at $40 a shareoutstanding. The market price of the common stock averaged$50 during 2018. The tax rate is 40%.During 2018, there were 40,000 shares of convertible preferredstock outstanding. The preferred is $100 par, pays $3.50 a yeardividend, and is convertible into three shares of common stock.were 200,000 shares of commonstockColson issued $2,000,000 of 8% convertible bonds at face valueduring 2017. Each $1,000 bond is convertible into 30 shares ofcommon stock.InstructionsCompute diluted earnings per share for 2018. Complete theschedule and show all computations.Adjust-IncomeSharesAdjustedAdjustedAdjust-NetSharesNetSecurityIncomementmentEPS

Solution: Diluted Earning per share is earnings per share computed based on common stock and all…

V. Colson Corp. had $800,000 net income in 2018. On J 1, 2018 there outstanding. On Aprib1, 20,000 shares were issued a September 1, Colson bought_30,000 shares of treasury There are 30,000 options to buy common stock at $40 a outstanding. The market price of the common stock av were 200,000 shares of common C50 during 2018 The tay rate is 40%

V. Colson Corp. had $800,000 net income in 2018. On J 1, 2018 there outstanding. On Aprib1, 20,000 shares were issued a September 1, Colson bought_30,000 shares of treasury There are 30,000 options to buy common stock at $40 a outstanding. The market price of the common stock av were 200,000 shares of common C50 during 2018 The tay rate is 40%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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