Chapter 13, Problem 2R

Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of $100 par value, 8% preferred stock outstanding on January 1, 2011. Each share of preferred stock is convertible into four shares of common stock. The stock has not been converted. During the year, Ponce Towers issued additional shares of common stock as follows:

For 2011, Ponce Towers, Inc., had income from continuing operations of $545,000 and a $72,000 loss from discontinued operations (net of tax).

Open the file EPS from the website for this book at cengagebrain.com. Enter all input items (A–F) in the appropriate cells in the Data Section. Enter all formulas in the appropriate cells in the Answer Section. Enter your name in cell A1. Save the completed file as EPS2. Print the worksheet when done. Also print your formulas. Check figure: Basic earnings per share from continuing operations (cell D29), $5.94.