Daniel Company had 30,000 shares of common stock outstanding on January 1 and issued an additional 9,000 on August 1 of 2016. 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. Daniel had after-tax net income for the year of $160,000, and the tax rate was 30%.
Required:
Compute the appropriate earnings per share amounts) to be reported on Daniel Company's 2016 income statement, and explain your answer.

Question

Quizplus · Accepted Answer

The Answer of Daniel Company had 30,000 shares of common stock outstanding on January 1 and issued an additional 9,000 on August 1 of 2016. 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. Daniel had after-tax net income for the year of $160,000, and the tax rate was 30%.
Required:
Compute the appropriate earnings per share amounts) to be reported on Daniel Company's 2016 income statement, and explain your answer.

Daniel Company Had 30,000 Shares of Common Stock Outstanding on January