At December 31,2013,Kissit Inc.had 400,000 shares of common stock outstanding.The company also had 40,000 shares of $7 convertible preferred stock.Each share is convertible into 4 shares of common stock.(Dividends were declared and paid.)
(1)Compute basic earnings (loss)per share.
(2)Compute diluted earnings (loss)per share.

Question

At December 31,2013,Kissit Inc.had 400,000 shares of common stock outstanding.The company also had 40,000 shares of $7 convertible preferred stock.Each share is convertible into 4 shares of common stock.(Dividends were declared and paid.)  
(1)Compute basic earnings (loss)per share.
(2)Compute diluted earnings (loss)per share.

Quizplus · Accepted Answer

The Answer of At December 31,2013,Kissit Inc.had 400,000 shares of common stock outstanding.The company also had 40,000 shares of $7 convertible preferred stock.Each share is convertible into 4 shares of common stock.(Dividends were declared and paid.)  
(1)Compute basic earnings (loss)per share.
(2)Compute diluted earnings (loss)per share.