User Account

All Pages

Compute diluted earnings per share

Assignment Help Accounting Basics
Reference no: EM132782497

Question - Colson Corp. had $800,000 net income in 2018. On January 1, 2018 there were 200,000 shares of common stock 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.

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.

Required - Compute diluted earnings per share for 2018. Complete the schedule and show all computations.

Reference no: EM132782497

Questions Cloud

How much tax would be paid directly by the owners : If a corporation had earnings of $40,000 and paid all of this out as a dividend to the owner, how much tax would be paid directly by the owners
What are the pros and cons of using dna profiling : What are the pros and cons of using DNA profiling to solve cases?
How did china and japan respond differently to challenges : How did China and Japan respond differently to the challenges of western imperialism in the 19th century ? What were some key events that marked this process?
Explain the accounting cycle giving clear examples : Mr Bvunza-Ask want to know the accounting cycle and why is it called a cycle. Explain to him the accounting cycle giving clear examples where possible.
Compute diluted earnings per share : Colson issued $2,000,000 of 8% convertible bonds at face value during 2017. Compute diluted earnings per share for 2018
Discuss the rise and fall of british imperial power in india : Discuss the rise and fall of British imperial power in India. What were major milestone in this process? Who were some significant players?
Record dividends payable on common and preferred stock : A total cash dividend of $90,000 was declared and payable to stockholders of record. Record dividends payable on common and preferred stock
How are the two other types of carbohydrates formed : How are the two other types of carbohydrates formed? Give examples of each type. Hint: think about more complex sugar in chains.
Write a paper that explores religion in the news : Write a paper that explores religion in the news. Find an extensive news story on one Western religion or one of the New Religious Movements.

Reviews

Write a Review

Accounting Basics Questions & Answers

  The purpose of part iii is to obtain an understanding of

the purpose of part iii is to obtain an understanding of internal control and assess control risk for pinnacle

  General types of subsequent events

What are the general types of subsequent events that require Green's consideration and evaluation? What are the auditing procedures Green should consider performing to gather evidence concerning subsequent events?

  What liability does Farah face as a result of the theft

Farah and David decide to form a sports memorabilia retail partnership. What liability does Farah face as a result of the theft

  Find cost of goods sold is lesser than the cost of goods

If the cost of goods sold is lesser than the cost of goods manufactured, then? total manufacturing costs must be greater than cost of goods manufactured.

  Discuss other alternatives to long-term liabilities for a

discuss whether or not it is good for businesses to assume long-term liabilities. illustrate your point with an

  What is the net present value for each project

Project B costs $5,000 but should generate a return of $7,800 at The end of the third year. What is the net present value (NPV) for each project

  Complete the cash budget spreadsheet

311.530 And 311.538 ACCOUNTING PRACTICES ACCOUNTING PRACTICES ASSIGNMENT. Complete the cash budget spreadsheet and submit

  Compute the number of equivalent units

A company uses the FIFO method for inventory costing. At the beginning of a period, the production department had 48,000 units in beginning Work in Process.

  Higher earnings per share of common stock

Prepare an analysis and determine which plan will result in the higher earnings per share of common stock. Recommend one plan to the board. Give reason

  Write an equation that represents a cab companys rate taking

Using your own experience or some internet research, write an equation that represents a cab company's rate taking into account the initial flat boarding rate and the per mile rate.

  What is the adjusting entry to record interest

What is the adjusting entry to record interest for Pristine Company (the holder of the note) as of December 31 if they receive a $27,000

  What is the maximum education credit

Assuming that if they otherwise qualify, what is the maximum education credit that Emilio and Lara can take on their return

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd