User Account

All Pages

What should be the diluted earnings per share

Assignment Help Accounting Basics
Reference no: EM133044216

Questions -

Q1. Hurontario Enterprises had 200,000 shares of ordinary stock issued and outstanding at December 31, 2020. On July 1, 2021, Hurontario issued a 10 percent stock dividend. Unexercised stock options to purchase 40,000 shares of ordinary stock (adjusted for the 2021 stock dividend) at 20 per share were outstanding at the beginning and end of 2021. The market price of Hurontario's ordinary stock (which was not affected by the stock dividend) was 25 per share during 2021. Net income for the year ended December 31, 2021, was 1,100,000. What should be Hurontario's 2021 diluted earnings per ordinary share, rounded to the nearest penny?

a. 4.23

b. 4.82

c. 5.00

d. 5.05

Q2. On January 2, 2020, Lakeshore Co. issued at par 50,000 of 4 percent bonds convertible, in total, into 5,000 shares of Lakeshore's ordinary stock. No bonds were converted during 2020. Throughout 2020 Lakeshore had 5,000 shares of ordinary stock outstanding. Lakeshore's 2020 net income was 5,000. Lakeshore's income tax rate is 40 percent. No potentially dilutive securities other than the convertible bonds were outstanding during 2020. Lakeshore's diluted earnings per share for 2020 would be

a. 0.58.

b. 0.62.

c. 0.70.

d. 1.16

Q3. At December 31, 2020, the Queen Company had 700,000 shares of ordinary stock outstanding. On September 1, 2021, an additional 300,000 shares of ordinary stock were issued. In addition, Queen had 20,000,000 of 8 percent convertible bonds outstanding at December 31, 2020, which are convertible into 400,000 shares of ordinary stock. No bonds were converted into ordinary stock in 2021. The net income for the year ended December 31, 2021, was 6,000,000. Assuming the income tax rate was 40 percent, what should be the diluted earnings per share for the year ended December 31, 2021?

a. 5.00

b. 5.53

c. 5.80

d. 8.30

Q4. The 2021 net income of Atwater Inc. was 200,000 and 100,000 shares of its ordinary stock were outstanding during the entire year. In addition, there were outstanding options to purchase 10,000 shares of ordinary stock at 10 per share. These options were granted in 2020 and none had been exercised by December 31, 2021. Market prices of Atwater's ordinary stock during 2021 were

January 1 20 per share

December 31 40 per share

Average Price 25 per share

The amount that should be shown as Atwater's diluted earnings per share for 2021 (rounded to the nearest cent) is

a. 2.00.

b. 1.95.

c. 1.89.

d. 1.86.

Q5. Alberta Incorporated has 2,500,000 shares of ordinary stock outstanding on December 31, 2020. An additional 500,000 shares of ordinary stock were issued April 1, 2021, and 250,000 more on July 1, 2021. On October 1, 2021, Alberta issued 5,000, 1,000 face value, 7 percent convertible bonds. Each bond is convertible into 40 shares of ordinary stock. No bonds were converted into ordinary stock in 2021. What is the number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively?

a. 2,875,000 and 2,925,000

b. 2,875,000 and 3,075,000

c. 3,000,000 and 3,050,000

d. 3,000,000 and 3,200,000

Reference no: EM133044216

Questions Cloud

What is the accounts receivable turnover ratio : The accounts receivable balance on February 1, 2020 was 40,000 and the balance was 85,000 on January 31, 2021. What is the accounts receivable turnover ratio
Attacking web applications created through appmaker : Who are the threat agents who will be most interested in attacking Web applications created through AppMaker?
How many years will it take the investment to grow : You make a 12,500 investment. How many years will it take the investment to grow to $18,000 if the investment earns 5% per year
How many units were started and completed : Toyland Company Producers small plastic toy. Under the FIFO method, how many units were started and completed with respect to direct materials during the month
What should be the diluted earnings per share : Assuming the income tax rate was 40 percent, what should be the diluted earnings per share for the year ended December 31, 2021
Players club program and player information systems : How does the MGM Grand derive value from its Players Club program and its player information systems?
Deal with issue of noise : What kind of user training should be conducted to deal with issue of noise (electrical). What effects would false positives have on an organization?
How much is compensation expense that should be recognized : On January 1, 2018, Jerome Company granted 100 share options each, to 500 employees, How much is compensation expense that should be recognized
What product or service will you provide : Describe your business. What product or service will you provide? What will your high-level strategy be: to focus on cost/efficiency or provide high value

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the cost of merchandise sold

Assuming the business maintains a perpetual inventory system, calculate the cost of merchandise sold and ending inventory under First-in, first-out

  Calculate minimum transfer price that green grass required

Green Grass Co., a division of Lawn Supplies, Inc., Calculate the minimum transfer price that Green Grass should be required to accept.

  Compute the debt to assets ratio and times interest earned

Make a 3-year trend analysis, using 2011 as the base year, of net sales and net income. Compute the debt to assets ratio and times interest earned

  The constant-growth valuation model is based on the premise

The constant-growth valuation model is based on the premise that the value of a share of common stock is________.a. equal to the present value of all expected future dividends.b. determined based on an industry standard P/E multiple.c. the sum of the..

  Find the total cost that should have been recorded

Use this information to find the total cost that should have been recorded in the Work in Process for Job A-1 on May 21

  Identify the services provided by arthur andersen

Identify the services provided by Arthur Andersen that are no longer allowed to be performed. Do you believe that Section 201 was needed? Why or Why not?

  Assume the same facts as in the previous example how much

1. under the modified accrual basis of accounting revenues cannot be recognizeda. until cash has been collectedb.

  Discuss the main assumption of sarbanes-oxley act

Discuss the main assumption of Sarbanes-Oxley Act of 2002, Discuss the applicability of SOX on managers decision making such as performance measurements

  Steps in accounting cycle and items on balance sheet

What are the steps of the accounting cycle? Why is it necessary to make adjusting entries at the end of each accounting period? What would happen if all of the steps of the accounting cycle were not completed in a specific accounting period?

  What consolidating entry adjustment is necessary

Assume that a Parent company owns 65 percent of its Subsidiary. What consolidating entry adjustment is necessary for beginning-of-year Equity investment balance

  What is a distributive share of the partnership loss

Loss was sustained in substantially equal amounts over the course of the partnership's tax year. What is A's distributive share of the partnership loss?

  What is the interest cost for 2012 with respect to davenport

Calculate pension expense for 2012 with respect to Davenport, assuming plan assets attributable to her of $150,000 and a rate of return (actual and expected) of 10%.

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