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help me asap please
884 Chapter 16 Diutive Soul soffice of Thomp the year ending stocka Instru 818 Cha Id Prepane, in good form, a comparative in
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Answer #1

Part A

Event

Dates outstanding

Shares outstanding

restatement

Fraction of year

Weighted shares

Beginning Balance, including 5% stock dividend

Jan. 1–Apr. 1

2100000

2.0

3/12

1050000

Conversion of preferred stock

Apr. 1–July 1

2520000

2.0

3/12

1260000

Stock split

July 1–Aug. 1

5040000

1/12

420000

Issued shares for building

Aug. 1–Nov. 1

5178240

3/12

1335000

Purchase of Treasury stock

Nov. 1–Dec. 31

5316000

2/12

886000

Total number of common shares to compute basic earnings per share

4951000

2000000*1.05 = 2100000

(2100000+400000+(400000*5%)) = 2520000

2520000*2 = 5040000

5040000+300000 = 5340000

5340000-24000 = 5154240

Part 2

Number of shares to compute basic earnings per

4951000

Convertible preferred stock—still outstanding ((300000) X 2 X 1.05)

630000

Convertible preferred stock—converted (400000 X 2 X 1.05 X 3/12)

210000

Number of shares to compute diluted earnings per share

5791000

Part 3

After-tax net income

11550000

Preferred stock dividends

March 31 (700,000 X $0.75)

525000

June 30, September 30, and December 31 (300000 X $0.75 X 3)

675000

(1200000)

Adjusted net income

$10350000

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