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mr Goodwill [35]
3 years ago
13

Crane Company had 190000 shares of common stock, 19000 shares of convertible preferred stock, and $1490000 of 4% convertible bon

ds outstanding during 2021. The preferred stock is convertible into 39000 shares of common stock. During 2021, Crane paid dividends of $0.80 per share on the common stock and $2 per share on the preferred stock. Each $1,000 bond is convertible into 30 shares of common stock. The net income for 2021 was $590000 and the income tax rate was 30%. Basic earnings per share for 2021 is (rounded to the nearest penny)
Business
1 answer:
Mrac [35]3 years ago
8 0

Answer:

Basic earnings per share(EPS)=$2.90

Explanation:

<em>Earnings per share is the total earnings attributable to ordinary shareholders divided by the number of units of common stock . </em>

<em>It represents profit per unit of stock unit held by common stock holder investor. The higher, the more profitable and the better.</em>

Earnings per share = Earnings attributable to ordinary shareholders / units of common stock

Earnings attributable to ordinary shareholders= Net income after tax - preference dividend

Net Income 2021= $590,000=

Preference Dividend  =$2 × 19,000=$38,000

Earnings attributable to ordinary shareholders for 2021=

=$590,000-$38,000=$552,000

Basic Earnings per share=$552,000/190,000 shares=$2.90

Basic earnings per share(EPS)=$2.90

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Kosher Pickle Company acquires all the outstanding stock of Midwest Produce for $15.0 million. The fair value of Midwest's asset
JulsSmile [24]

Given Information:

Fair value of consideration paid = $15 million

Fair value of Midwest's assets=$11.9 million

Fair value of  Midwest's liabilities=$1.7 million

Required Information:

Amount paid for goodwill = ?

Answer:

Amount paid for goodwill = 4.8 million

Explanation:

The amount of goodwill can be calculated by

Amount of goodwill = Fair value of consideration paid - Fair value of net identifiable assets

The Fair value of net identifiable assets is found by

Fair value of net identifiable assets = Fair value of Midwest's assets - Fair value of Midwest's liabilities

Fair value of net identifiable assets = 11.9 - 1.7

Fair value of net identifiable assets = 10.2 million

Therefore, the amount paid for goodwill is

Amount paid for Goodwill = 15 - 10.2

Amount paid for Goodwill = 4.8 million

7 0
3 years ago
Acquisition costs; journal entries
Aleks [24]

Answer:

Journal entries for the transactions are given below

Explanation:

1. Development of new product

                                                               DEBIT     CREDIT

Research and development                 $24,000

Cash                                                                         $24,000

2. Paid the plaintiff for losing patent

                                                                DEBIT     CREDIT

Legal fee (expense)                             $8,000

Cash                                                                         $8,000

3. Bought Equipment and signed non-interest bearing note

                                                                DEBIT     CREDIT

Equipment Cash price                          $37,000

Discount on note payable                    $5,000

Cash paid                                                                  $18,000

Note payable                                                            $24,000

4. Installed sprinkler system

                                                                DEBIT     CREDIT

Sprinkler system                                     $40,000

Cash                                                                         $40,000

5. Plaintiff paid for successful infringement  suit on its patent

                                                                DEBIT     CREDIT

Patent                                                     $24,000

Cash                                                                         $24,000

6. Bought New equipment and traded old one

                                                                DEBIT     CREDIT

New Equipment                                    $13,600

Accumulated depreciation                   $6,800

Loss on sale                                           $3,400

Old Equipment                                                        $13,400

Cash                                                                         $10,400

Working:

Accumulated depreciation = Original Cost - book value

Accumulated depreciation = $13,400 - $6,600

Accumulated depreciation = $6,800                                                      

7 0
3 years ago
__________ is credited with being the first restaurant to franchise.
Mazyrski [523]
During 1850,Frederick Henry Harvey is the one founded the first restaurant chain in the U.S. The first of the Harvey House restaurants opened in 1876, in a terminal of the Atchison, Topeka & Santa Fe Railroad. In 1887, there was a Harvey House restaurant in every 100 miles along the 12,000‑mile‑long Atchison, Topeka & Santa Fe line. He strongly believe that quality control established is the reason why regular field visits to his restaurants, and provided services similar to those used today by franchisors
3 0
3 years ago
A nation has a population of 260 million people. Of these, 60 million are retired, in the military, in institutions, or under 16
aleksley [76]

Answer: 6%

Explanation:

Total population= 260 million.

Dependent population= 60 million

Employed population= 188 million

Unemployed population= 12 million

Total Labour Force= employed population + unemployed population

= 188 million + 12 million

= 200 million

Therefore total labor force= 200 million

Unemployment rate= unemployed people/ Total Labour Force×100

= 12 million/200 million×100

=0.06× 100

=6%

Unemployment rate= 6%

6 0
3 years ago
While preparing a bank reconciliation, a bank service charge was discovered. This adjustment would be recorded with a?
Sedaia [141]

While preparing a bank reconciliation, a bank service charge was discovered. This adjustment would be recorded with a Credit to cash, debit to bank fees expense.

Bank Reconciliation is an important manner in accounting wherein agencies healthy their bank statements with the transactions which can be recorded in their preferred ledger. making ready a financial institution reconciliation statement facilitates businesses to put off viable errors in transactions or bookkeeping.

There are 5 principal kinds of bank reconciliation: financial institution reconciliation, consumer reconciliation, dealer reconciliation, inter-company reconciliation, and business-unique reconciliation.

In bookkeeping, a financial institution reconciliation is a procedure by using which the financial institution account balance in an entity’s books of account is reconciled to the balance said by using the monetary organization inside the maximum latest bank declaration. Any distinction between the 2 figures needs to be examined and, if appropriate, rectified.

Learn more about bank reconciliation here brainly.com/question/15525383

#SPJ4

7 0
1 year ago
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