Calculate the earnings per share amounts

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Problem - Convertible Bonds and EPS Dream Corporation reported net income of $44,000 for 2019. The company has 10,000 shares of common stock issued and outstanding for all of 2019 and no preferred stock. During 2018, Dream issued $400,000 of 8% convertible bonds at par value. Each $1,000 bond can be converted into 24 shares of common stock. No bonds have been converted as of December 31, 2019. Dream has a 30% tax rate.

Required -

Calculate the earnings per share amounts that Dream should disclose on its 2019 income statement.

How will the calculations of earnings per share change if the convertible bonds are antidilutive?

Reference no: EM132889814

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