Business
Business, 24.10.2019 16:43, vale2652

The information below pertains to barkley company for 2019. a. net income for 2019 was $300,000. b. $500,000 of 8% 10-year convertible bonds issued at 97 ($1,000 face per bond); each bond is convertible into 40 shares of common stock, were outstanding the entire period. the discount is being amortized on a straight-line basis. c. $700,000 of 6% convertible, cumulative preferred stock, $100 par value, which was issued at $104; each share is convertible into 4 shares of common stock were outstanding the entire period. d. 100,000 shares of $10 par value common stock was outstanding at the beginning of 2019. on july 29, an additional 20,000 shares were issued. on september 15, a 20% stock dividend was declared and issued. on december 1, 6,000 shares were reacquired as treasury stock. e. tax rate for 2019 of 30% f. average market price of common stock $25 per share for the year g. outstanding incentive stock option include options (granted at the beginning of 2018 with a 2 year vesting period) to purchase 8,000 shares of common stock at $20 per share. note: the conversion ratios and exchange rates for convertible bonds, preferred stock and options are shown on an as adjusted basis after the stock dividend. instructions: 1. compute the basic earnings per share. show supporting calculations. 2. compute the diluted earnings per share. show supporting calculations. 3. indicate which earnings per share figure(s) barkley company would report on its 2019 income statement.

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The information below pertains to barkley company for 2019. a. net income for 2019 was $300,000. b....

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