INTERMEDIATE ACCOUNTING (LL) W/CONNECT
9th Edition
ISBN: 9781260679694
Author: SPICELAND
Publisher: MCG
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Chapter 19, Problem 19.14P
EPS; convertible preferred stock; convertible bonds; order of entry
• LO19–7, LO19–9, LO19–10
Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2018:
| Common shares outstanding throughout the year | 100 million |
| Convertible |
60 million |
| Convertible 10% bonds (convertible into 13.5 million shares of common) | $900 million |
Henderson-Niles’s net income for the year ended December 31, 2018, is $520 million. The income tax rate is 40%. Henderson-Niles paid dividends of $2 per share on its preferred stock during 2018.
Required:
Compute basic and diluted earnings per share for the year ended December 31, 2018.
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Chapter 19 Solutions
INTERMEDIATE ACCOUNTING (LL) W/CONNECT
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