Dave Company had 30, 000 shares of common stock outstanding on January 1 and issued an additional 9, 000 on August 1 of 2010.The company also has $100, 000 of 8% convertible bonds outstanding during the year.Each $1, 000 bond is convertible into 5 shares of common stock.Dave had after-tax net income for the year of $160, 000, and the tax rate was 30%.
Required:
Compute the appropriate earnings per share amount(s)to be reported on Dave Company's 2010 income statement, and explain your answer.

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The Answer of Dave Company had 30, 000 shares of common stock outstanding on January 1 and issued an additional 9, 000 on August 1 of 2010.The company also has $100, 000 of 8% convertible bonds outstanding during the year.Each $1, 000 bond is convertible into 5 shares of common stock.Dave had after-tax net income for the year of $160, 000, and the tax rate was 30%.
Required:
Compute the appropriate earnings per share amount(s)to be reported on Dave Company's 2010 income statement, and explain your answer.

Dave Company Had 30, 000 Shares of Common Stock Outstanding