1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alika [10]
3 years ago
10

On June 1, 2015, Ivanhoe Company and Shamrock Company merged to form Bridgeport Inc. A total of 752,000 shares were issued to co

mplete the merger. The new corporation reports on a calendar-year basis.
On April 1, 2017, the company issued an additional 562,000 shares of stock for cash. All 1,314,000 shares were outstanding on December 31, 2017.

Bridgeport Inc. also issued $600,000 of 20-year, 7% convertible bonds at par on July 1, 2017. Each $1,000 bond converts to 44 shares of common at any interest date. None of the bonds have been converted to date.

Bridgeport Inc. is preparing its annual report for the fiscal year ending December 31, 2017. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,614,000. (The tax rate is 40%.)

Determine the following for 2017.

(a) The number of shares to be used for calculating: (Round answers to 0 decimal places, e.g. $2,500.)

(1) Basic earnings per share
(2) Diluted earnings per share


(b) The earnings figures to be used for calculating: (Round answers to 0 decimal places, e.g. $2,500.)

(1) Basic earnings per share $
(2) Diluted earnings per share $
Business
1 answer:
kompoz [17]3 years ago
7 0

Solution:

a-1) Calculation of the number of shares used for calculating Basic Earning per share    

No. of shares                         period        

752000                                    3/12                           188000    

1314000                                    9/12                           985500    

Weighted average No of shares outstanding   1173500

a-2) Calculation of the number of shares used for calculating Diluted Earning per share    

                        No. of shares                 period        

                          752000                   3/12                 188000                                     1314000                    3/12                  328500      with Bonds       1340400                    6/12                670200      

Weighted average No of shares outstanding           1186700   

Each bonds to per converted into 44 common stock

i.e. 600 Bonds *44 common=26400 Potential equity shares

b-1) Calculation of earning figures to be used for calculating Basic Earning per share    

After Tax net Income will be earnings = $1614000      

b-2) Calculation of earning figures to be used for calculating Diluted Earning per share    

After tax net Income                                                   1614000      

Interest for the 2017 =600000*7*6/12   21000      

Tax effect on Interest @40%                     8400      12600                                                                                                 1626600

Earnings = 1626600      

You might be interested in
Are now the largest single component of the supply side of gdp, representing over half of gdp.
saveliy_v [14]

Services are now the largest single component of the supply side of gdp, representing over half of gdp.

4 0
3 years ago
Read 2 more answers
If your tuition is $2,000 this semester, your books cost $400, you can only work 10 rather than 40 hours per week during the 15
Juli2301 [7.4K]
Opportunity cost is computed as the difference between the present worth and the cost. present worth is the product of $12 and 10 hours * 15 weeks while the cost includes the tuition cost, books cost and the board cost. The cost has a total of <span>$2,000 + $400 + $4000 equal to $6400. The difference is equal to $4600</span>
4 0
3 years ago
________ is an external factor associated with change.New equipment Unselected Changing technology Unselected Changing employee
Reil [10]

Answer:

Changing technology

Explanation:

4 0
3 years ago
Which matter is considered when calculating a country's balance of payments?
Mariulka [41]

The matter that will considered when calculating a country's balance of payments is the military expenditures.

<h3>What is a balance of payments?</h3>

This refers to the balance of international payments. This is athe statement of all transactions made between entities in one country and the rest of the world over a defined period such as during a month, quarter, year etc.

The balance of payments summarizes all transactions that a country's individuals, companies, government bodies complete with individuals, companies, and government bodies outside the country.

These balance of payments helps to measures the inflows and outflows of money from sectors such as tourism, foreign aid, military expenditures and foreign investments as well as flows resulting from exports and imports.

Hence, the matter that will considered when calculating a country's balance of payments is the military expenditures.

Therefore, the Option A is correct.

Read more about balance of payments

brainly.com/question/7536033

#SPJ1

8 0
1 year ago
When it comes to life insurance, premium refers to
ch4aika [34]
<span>D. total cost of insurance coverage</span>
6 0
3 years ago
Read 2 more answers
Other questions:
  • You need to have $32,000 in 14 years. You can earn an annual interest rate of 3 percent for the first 4 years, 3.6 percent for t
    8·1 answer
  • What is a beneficiary? Question 50 options: The person who files insurance claims on your behalf The person who determines wheth
    8·1 answer
  • Jimmy Company’s cash balance at the end of the month was $8,500. After comparing the company’s records with the monthly bank sta
    9·1 answer
  • Nathan has $300 to open a checking account. He wants an account with the lowest fees. He plans on using the ATM machine, and his
    5·2 answers
  • Suppose one of the cases is selected at random and the outcome of the appeal and type of trial are observed.
    6·1 answer
  • . JetGreen Cleaners makes 80% of its sales on credit. Experience shows that 25% of the credit customers pay in the month of sale
    11·1 answer
  • (TCO B) In the 1970s, Church &amp; Dwight began selling Arm &amp; Hammer Baking Soda Deodorant. Within 6 months the product was
    8·1 answer
  • Sometimes you find yourself getting off-task because your boss keeps piling on the work, and you aren't sure what to prioritize.
    13·1 answer
  • A transfer payment is a payment made by a. firms, but not in exchange for capital equipment. b. foreigners, but not in exchange
    12·1 answer
  • g The Investment Trust Fund for Watson County had the following transactions and events during the calendar year 2022: 1. The ci
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!