Reference no: EM132643588

Question -

1. Given the following common share transactions during a year, what is the weighted average number of common shares outstanding?

Date Share changes Share outstanding

1-Jan Beg. Balance 90,00

1-April Issued 30,000 shares for cash 30,00

120,000

1-Jun Repurchased 39,000 shares (39,000)

81,000

1-Nov Issued 60,000 shares for cash 60,000

31-Dec Ending balance 141,000

2. A Corporation has net income for the year of $410,000 and a weighted average number of common shares outstanding during the period of 100,000 shares. The company has two convertible debenture bond issues outstanding.10 One is a 6% issue sold at 100 (total $1 million) in a prior year and convertible into 20,000 common shares. The other is a 10% issue sold at 100 (total $500,000) on April 1 of the current year and convertible into 32,000 common shares. The tax rate is 30%.

What is the diluted EPS in this case?

3. What is an anti-dilutive security?

4. List 2 reasons for the differences between accounting income and taxable income

5. If A Company reported revenue of $130,000 on its 2020 income statement. For tax purposes, the company reported only $100,000 of taxable revenue, the amount that was collected in cash in the year. At the end of 2020, the carrying amount of accounts receivable on the balance sheet is $30,000 (that is, $130,000 - $100,000 collected).

Does the difference between the carrying amount and tax value of the accounts receivable represent a taxable or deductible temporary difference? Why?