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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
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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V. Colson Corp. had $800,000 net income in 2018. On January 1, 2018 there outstanding. On April 1, 20,000 shares were issued and on September 1, Colson bought_30,000 shares of treasury stock. There are 30,000 options to buy common stock at $40 a share outstanding. 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 preferred stock outstanding. The preferred is $100 par, pays $3.50 a year dividend, and is convertible into three shares of common stock. were 200,000 shares of common stock Colson issued $2,000,000 of 8% convertible bonds at face value during 2017. Each $1,000 bond is convertible into 30 shares of common stock. Instructions Compute diluted earnings per share for 2018. Complete the schedule and show all computations. Adjust- Income Shares Adjusted Adjusted Adjust- Net Shares Net Security Income ment ment EPS
Transcribed Image Text:V. Colson Corp. had $800,000 net income in 2018. On January 1, 2018 there outstanding. On April 1, 20,000 shares were issued and on September 1, Colson bought_30,000 shares of treasury stock. There are 30,000 options to buy common stock at $40 a share outstanding. 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 preferred stock outstanding. The preferred is $100 par, pays $3.50 a year dividend, and is convertible into three shares of common stock. were 200,000 shares of common stock Colson issued $2,000,000 of 8% convertible bonds at face value during 2017. Each $1,000 bond is convertible into 30 shares of common stock. Instructions Compute diluted earnings per share for 2018. Complete the schedule and show all computations. Adjust- Income Shares Adjusted Adjusted Adjust- Net Shares Net Security Income ment ment EPS
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