On June 1, 2018, Sunland Company and Coronado Company merged to
form Whispering Inc. A total of 834,000 shares were issued to
complete the merger. The new corporation reports on a calendar-year
basis.
On April 1, 2020, the company issued an additional 552,000 shares
of stock for cash. All 1,386,000 shares were outstanding on
December 31, 2020.
Whispering Inc. also issued $600,000 of 20-year, 8% convertible
bonds at par on July 1, 2020. Each $1,000 bond converts to 40
shares of common at any interest date. None of the bonds have been
converted to date.
Whispering Inc. is preparing its annual report for the fiscal year
ending December 31, 2020. The annual report will show earnings per
share figures based upon a reported after-tax net income of
$1,584,000. (The tax rate is 20%.)
Determine the following for 2020.
(a) The number of shares to be used for
calculating: (Round answers to 0 decimal places, e.g.
$2,500.)
(1) |
Basic earnings per share |
enter a number of shares rounded to 0 decimal places |
shares | |||
---|---|---|---|---|---|---|
(2) |
Diluted earnings per share |
enter a number of shares rounded to 0 decimal places |
shares |
(b) The earnings figures to be used for
calculating: (Round answers to 0 decimal places, e.g.
$2,500.)
(1) |
Basic earnings per share |
$enter a dollar amount rounded to 0 decimal places |
||
---|---|---|---|---|
(2) |
Diluted earnings per share |
$enter a dollar amount rounded to 0 decimal places |
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