Answer:
Explanation:
In the case of the stock split, no journal entry is required as it does not change the total value of the shareholder equity. It only changes the number of shares based on the stock split ratio. The total value would remain same. Moreover, no conversion is held.
All other information which is given is not relevant. Hence, ignored it
Answer:
Option E ($4,000; $3,000) is the appropriate alternative.
Explanation:
- Assuming that America pursues a policy recognized as free-trade by imposing no limits against diamond exportation as well as importation, the amount of those policy balance shall be towards the particular moment whenever domestic supplies exceed domestic demand, in other words, $4,000.
- This same amount of balance would be at a stage wherever American production crosses the domestic production with something like a quota limit of $3,000 unless the U.S sets the allocation.
Some other possibilities don't relate to the type of situation in question. The answer, then, is the right one.
Answer:
Poppy Corporation
Consolidated EPS
Basic Earnings per share = $67,600/10,000 = $6.76 per share.
Diluted earnings per share = $74,800/10,000 = $7.48 per share
Explanation:
With the conversion of the Seed's bonds, the interest of $20,000 would be included in its income. And an after tax increase of $12,000 (after taking out tax of 40% on $20,000) would be added to the net income, making the net income to become $48,000 ($36,000 + 12,000). The group's share of the net income would become $28,800 ($48,000 x 60%). This amount is added to the Poppy's net income of $46,000 to get a consolidated net income of $74,800 after the conversion of the bonds.
Before the conversion, the consolidated net income is $67,600 ($46,000 + 60% of $36,000).
EPS becomes diluted with the conversion of convertible debt securities. The effect for a consolidated entity like Poppy is the increase in the net income attributable to the holding company with the elimination of the interest expense. However, the number of shares outstanding for the group would remain the same as before the conversion since it was the bonds of the subsidiary that was converted and not the group's.
It's the p<span>rocess
used to manage the financial resources of a business</span>