Convertible preferred stock and convertible bonds

Assignment Help Accounting Basics

Reference no: EM13668374

Information for ABC Co:
12/31/2015 12/31/2014
Common shares Outstanding 100,000 100,000
Convertible preferred stock [$10 Par Value; convertible into 32,000 shares of common stock] $120,000 $120,000
10% Convertible bonds (convertible into 30,000 shares of common stock)
$1,000,000
$1,000,000

ABC's net income for the year ended 12/31/15 is $500,000. The income tax rate is 40%. ABC paid dividends of $5 per share on its preferred stock during 2015. There were no actual conversions of preferred stock or bonds during the year. Both the Convertible Preferred stock and Convertible Bonds were issued at Par Value.

Reference no: EM13668374

Questions Cloud

A certain first-order reaction has a rate constant : A certain first-order reaction has a rate constant of 2.95×10-2s-1 at 22°C. What is the value of k at 61°C if Ea = 80.0kJ/mol ?

Inorganic chemistry : INORGANIC CHEMISTRY

Given the quantities of chemicals used in this recipe : Given the quantities of chemicals used in this recipe

How elements generally prefer to form bonds : Octet rule refers to how elements generally prefer to form bonds so as to attain an octet configuration, i.e. have 8 electrons in their valence shell.

Convertible preferred stock and convertible bonds : Convertible Preferred stock and Convertible Bonds were issued at Par Value.

Dispose of it, inc. produces a variety of paper products : Dispose of It, Inc. produces a variety of paper products

Intangibles using the straight-line method : Sherwood Co. amortizes intangibles using the straight-line method.

Involve the provision of nonaudit services : The following situations involve the provision of nonaudit services indicate whether providing the service of AICPA rule or SEC rules including sarbanes Oxley requirements of independence Explain your as answer neccessary

The mission of the financial accounting standards board : "The mission of the Financial Accounting Standards Board is to establish and improve standards of financial accounting reporting for the guidance and education of the public, including issuers, auditors, and users of financial information.

User Account

All Pages