Business
Ivanhoe Corporation Ltd. has the following capital structure at the following fiscal years ended December 31:
| 2020 | 2019 | ||||
| Number of common shares | 840,000 | 690,000 | |||
| Number of non-convertible, non-cumulative preferred A shares | 40,000 | 40,000 | |||
| Amount of 4% convertible bonds | $1,000,000 | $1,000,000 |
The following additional information is available.
| 1. | On July 31, 2020, Ivanhoe Corporation exchanged common shares for a large piece of equipment. This was the only transaction that resulted in issuance of common shares in 2020. | |
| 2. | Income before discontinued operations for 2020 was $1,600,000, and a loss from discontinued operations of $320,000 was recorded, net of applicable tax recovery. | |
| 3. | During 2020, dividends in the amount of $4 per share were paid on the preferred A shares. | |
| 4. | Each $1,000 bond can be converted into 25 common shares. | |
| 5. | There were unexercised stock options, outstanding since 2017, that allow holders to purchase 20,000 common shares at $4.00 per share. | |
| 6. | Written warrants to purchase 10,000 common shares at $11.00 per share were outstanding at the end of 2019, and no warrants were exercised in 2020. | |
| 7. | The average market value of the common shares in 2020 was $9.00. | |
| 8. | Ivanhoe’s tax rate is 20%. | |
| 9. | Ivanhoe declared and paid a $10,000 dividend to common shareholders on June 1, 2020. |
Determine the weighted average number of common shares that would be used in calculating earnings per share for the year ended December 31, 2020.Part 1
Weighted average number of common shares shares
Homework Answers
Ivanhoe Corporation Ltd. has the following capital structure at the following fiscal years ended December 31: 2020 2019 Number of common shares 840,000 690,000 Number of non-convertible, non-cumulative preferred A shares 40,000 40,000 Amount of 4
Ivanhoe Corporation Ltd. has the following capital structure at the following fiscal years ended December 31:20202019Number of common shares840,000690,000Number of non-convertible, non-cumulative preferred A shares40,00040,000Amount of 4% convertible bonds$1,000,000$1,000,000The following additional information is available.1.On July 31, 2020, Ivanhoe Corporation exchanged common shares for a large piece of equipment. This was the only transaction that resulted in issuance of common shares in 2020.2.Income before discontinued operations for 2020 was $1,600,000, and a loss from discontinued operations of $320,000 was recorded, net of applicable tax recovery.3.During 2020,...
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> Can you please answer the remaining questions below?
Ivanhoe Corporation Ltd. has the following capital structure at the following fiscal years ended December 31:
2020 2019
Number of common shares 840,000 690,000
Number of non-convertible, non-cumulative preferred A shares 40,000 40,000
Amount of 4% convertible bonds $1,000,000 $1,000,000
The following additional information is available.
1. On July 31, 2020, Ivanhoe Corporation exchanged common shares for a large piece of equipment. This was the only transaction that resulted in issuance of common shares in 2020.
2. Income before discontinued operations for 2020 was $1,600,000, and a loss from discontinued operations of $320,000 was recorded, net of applicable tax recovery.
3. During 2020, dividends in the amount of $4 per share were paid on the preferred A shares.
4. Each $1,000 bond can be converted into 25 common shares.
5. There were unexercised stock options, outstanding since 2017, that allow holders to purchase 20,000 common shares at $4.00 per share.
6. Written warrants to purchase 10,000 common shares at $11.00 per share were outstanding at the end of 2019, and no warrants were exercised in 2020.
7. The average market value of the common shares in 2020 was $9.00.
8. Ivanhoe’s tax rate is 20%.
9. Ivanhoe declared and paid a $10,000 dividend to common shareholders on June 1, 2020.
Part 1
Correct answer iconYour answer is correct.
Determine the weighted average number of common shares that would be used in calculating earnings per share for the year ended December 31, 2020.
Weighted average number of common shares Enter your answer in accordance to the question statement
752500
shares
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Attempts: 1 of 2 used
Part 2
Starting with the heading “Income from Continuing Operations,” prepare the bottom portion of the income statement for the year ended December 31, 2020. Assume that Ivanhoe Corporation discloses all applicable earnings per share data on the face of the income statement. (Round Earnings Per Share amounts to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Ivanhoe Corporation
Partial Income Statement
For the Year Ended December 31, 2020
Income from Continuing Operations
$
Income from Discontinued Operations
Net Income / (Loss)
$
Basic earnings per share:
Loss from Continuing Operations
$
Loss from Discontinued Operations
Net Income / (Loss)
$
Diluted earnings per share:
$
$
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Mercy Tamonte Wed, May 12, 2021 12:11 AM