The following is a partial balance sheet for Adherance Corp.for the year ended December 31,2013:

(a)Each $1,000 convertible bond can be converted into 80 shares of common stock.
(b)On September 1,2014,one-third of the convertible debt was converted into common stock.
(c)Adherance reported net income of $1,550,000 in 2014.The income tax rate was 30 percent.
(d)No other stock transactions took place during 2014.
(1)Compute basic earnings per share for 2014.
(2)Compute diluted earnings per share for 2014.

Question

The following is a partial balance sheet for Adherance Corp.for the year ended December 31,2013:
  
(a)Each $1,000 convertible bond can be converted into 80 shares of common stock.
(b)On September 1,2014,one-third of the convertible debt was converted into common stock.
(c)Adherance reported net income of $1,550,000 in 2014.The income tax rate was 30 percent.
(d)No other stock transactions took place during 2014.
(1)Compute basic earnings per share for 2014.
(2)Compute diluted earnings per share for 2014.

Quizplus · Accepted Answer

The Answer of The following is a partial balance sheet for Adherance Corp.for the year ended December 31,2013:
  
(a)Each $1,000 convertible bond can be converted into 80 shares of common stock.
(b)On September 1,2014,one-third of the convertible debt was converted into common stock.
(c)Adherance reported net income of $1,550,000 in 2014.The income tax rate was 30 percent.
(d)No other stock transactions took place during 2014.
(1)Compute basic earnings per share for 2014.
(2)Compute diluted earnings per share for 2014.

The Following Is a Partial Balance Sheet for Adherance Corp