What is the earnings for diluted earnings per share

Assignment Help Accounting Basics

Reference no: EM132811426

Question - On June 1, 2018, Gustav Corp. and Gabby Limited merged to form Cullumber Inc. A total of 620,000 shares were issued to complete the merger. The new corporation uses the calendar year as its fiscal year.

On April 1, 2020, the company issued an additional 310,000 shares for cash. All 0.93 million shares were outstanding on December 31, 2020. Cullumber Inc. also issued $465,000 of 20-year, 9% convertible bonds at par on July 1, 2020. Each $1,000 bond converts to 37 common shares at the annual interest date. None of the bonds have been converted to date. If the bonds had been issued without the conversion feature, the annual interest rate would have been 10%.

Cullumber Inc. is preparing its financial statements for the fiscal year ended December 31, 2020. The financial statements will show earnings per share figures based on a reported after-tax net income of $1,510,000. (The tax rate is 30%).

What is the earnings for diluted earnings per share?

Reference no: EM132811426

Questions Cloud

What is the standard deviation of returns for mutual fund : Consider the following capital market: a risk-free asset yielding 2.25% per year. What is the standard deviation of returns for mutual fund

How do solve the costs to carry items including safety stock : Phoor uses 900 units of a product per year on a continuous basis. Calculate the costs to carry the items including safety stock?

Mgtcb526-managing in a changing environment : Describe what leadership theories you have seen used in your workplace. Which one was most effective or least effective and why?

What is racial profiling : What is racial profiling? Is there profiling done to prevent terrorism? What is your position on this?

What is the earnings for diluted earnings per share : A total of 620,000 shares were issued to complete the merger. What is the earnings for diluted earnings per share

Diversity implication of achieving criteria : What is the relationship between the strategy deliver superior medical quality and total cost management with the diversity implication of achieving criteria to

Difference between damaging relationship and deepening : Whenever you are in conflict with someone, there is one factor that can make the difference between damaging the relationship and deepening it.

What was the change in the operating income : Based on the information above, what was the change in the Operating Income from 2008 to 2009

Describe m details the above-said archetypes : 1. Ideal business and IT alignment in healthcare delivery organisations such as hospitals and clinics require achieving complete mutual agreement between all ac

User Account

All Pages