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Afina-wow [57]
3 years ago
6

Rockland Corporation earned net income of $300,000 in 2014 and had 100,000 shares of common stock outstanding throughout the yea

r. Also outstanding all year was $800,000 of 10% bonds, which are convertible into 16,000 shares of common. Rockland?s tax rate is 40 percent.
Compute Rockland?s 2014 diluted earnings per share. (Round answer to 2 decimal places, e.g. $3.55.)
Business
1 answer:
Anna007 [38]3 years ago
7 0

Answer:

Diluted eps = $3 per share.

Explanation:

Outstanding shares = 100000 shares

Net income = $ 300000

Bond face value = $800000

Convertible in to shares = 16000 shares

tax rate  = 40%.

we know that: diluted earning per share=( net income + after tax interest on convertible debt) / weighted average number of shares outstanding + diluted shares.

- After tax interest on convertible bond= 800000* 10% = $80000 interest.

       $80000 * tax rate = 80000 * 40%= 32000.

After tax interest on convertible bond= 80000-32000= $48000.

             =  (300000 +48000)

                / (100000 + 16000)

            = 348000/116000

             = #3 per share.

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If you were charged $1152 in taxes on a $2560 purchase. What percent tax were you charged
katen-ka-za [31]

Answer:

Percent tax = 45%

Explanation:

Given:

Amount of tax charged = $1,152

Amount of purchase = $2,560

Find:

Percent tax

Computation:

Percent tax = [Amount of tax charged / Amount of purchase]100

Percent tax = [1152 / 2560]100

Percent tax = 45%

6 0
3 years ago
Which of the following statements is most correct?(a) The primary test of feasibility in a reorganization is whether every claim
ss7ja [257]

Answer:

The correct answer is letter "E": To a large extent, the decision to dissolve a firm through liquidation versus keeping it alive through reorganization depends on a determination of the value of the firm if it is rehabilitated versus the value of its assets if they are sold off individually.

Explanation:

Liquidation refers to the termination of an enterprise and the transfer of its properties to the creditor or business owners. The liquidation most frequently happens in the context of a bankruptcy. A bankruptcy trustee must sell the company properties to the creditors and split the proceeds.

<em>The decision of keeping a business against liquidating it will depend on the comparison between the value of continuing operating which relies on the current value the firm has in the market against the value of the individual assets the firm has. Whichever greater will determine if the business will remain open or if it will be closed.</em>

5 0
3 years ago
Rodriquez Company budgeted the following sales in units: January 30,000 February 20,000 March 40,000 Rodriquez's policy is to ha
chubhunter [2.5K]

Answer:

24,000 units

Explanation:

Given:

Budgeted sales for January = 30,000

Budgeted sales for February = 20,000

Opening inventory in January = 7,500

Desired ending inventory = 20% of sales in February

                                        = 0.2 × 20,000

                                        = 4,000 units

Units required in January = 30,000 + 4,000

                                        = 34,000 units

Units to be produced in January = 34,000 - opening inventory

                                                   = 34,000 - 7,500

                                                   = 26,500 units

Budgeted sales for February = 20,000

Budgeted sales for March = 40,000

Opening inventory in February is closing inventory of January = 4,000

Desired ending inventory = 20% of sales in March

                                        = 0.2 × 40,000

                                        = 8,000 units

Units required in February = 20,000 + 8,000

                                        = 28,000 units

Units to be produced in February = 28,000 - opening inventory

                                                         = 28,000 - 4,000

                                                         = 24,000 units

5 0
3 years ago
Which of the following is a person who authorized an agent to act on his or her behalf ​
lina2011 [118]

Answer:

Principal

Explanation:

A power of attorney (POA) is a legal document giving one person (the agent or attorney-in-fact) the power to act for another person (the principal).

8 0
2 years ago
When governments tax or regulate industries causing pollution, they are
LekaFEV [45]
I think it’s A Idek
4 0
3 years ago
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