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At the end of the year, the records of Luholtz Corporation show the following. Common stock, no-par, authorized 500,000 shares; issued and outstanding during the year, 100,000 shares Stock dividend issued, December 31, 50,000 shares (not included in 100,000 shares above) Retained earnings (after effect of dividends on all shares) Bonds payable, 4.5%; each $1,000 bond is convertible to 80 shares of common stock after the stock dividend (bonds issued at par two years prior) Bonds payable, 6.5%; each $1,000 bond is convertible to 90 shares of common stock after the stock dividend (bonds issued at par two years prior) Net income Income tax rate, 25% Required Prepare the required EPS presentation for the year. Basic EPS 4.5% Convertible bonds Adjustment to net income available to common stockholders Adjustment to common shares outstanding Tentative diluted EPS 6.5% Convertible bonds Adjustment to net income available to common stockholders Adjustment to common shares outstanding Tentative diluted EPS Basic earnings per share $ Diluted earning per share $ Net Income Available to Common Stockholders 222.000 ✓ 0 x 0x 5 $ $ 202.600 x 222,000 * 0 x 0x/ Weighted Avg. Common Shares Outstanding 150,000 35,000,000 x $ 185,000 = $ 0x 0x-5 Per • Note: Enter below, the applicable results from the information above, EXACTLY as shown above. Share 1.48 Dilutive or Anti-dilutive 1.2 Dilutive Dilutive + ✓ + $680,000 340,000 500,000 100,000 300,000 222,000

At the end of the year, the records of Luholtz Corporation show the following. Common stock, no-par, authorized 500,000 shares; issued and outstanding during the year, 100,000 shares Stock dividend issued, December 31, 50,000 shares (not included in 100,000 shares above) Retained earnings (after effect of dividends on all shares) Bonds payable, 4.5%; each $1,000 bond is convertible to 80 shares of common stock after the stock dividend (bonds issued at par two years prior) Bonds payable, 6.5%; each $1,000 bond is convertible to 90 shares of common stock after the stock dividend (bonds issued at par two years prior) Net income Income tax rate, 25% Required Prepare the required EPS presentation for the year. Basic EPS 4.5% Convertible bonds Adjustment to net income available to common stockholders Adjustment to common shares outstanding Tentative diluted EPS 6.5% Convertible bonds Adjustment to net income available to common stockholders Adjustment to common shares outstanding Tentative diluted EPS Basic earnings per share $ Diluted earning per share $ Net Income Available to Common Stockholders 222.000 ✓ 0 x 0x 5 $ $ 202.600 x 222,000 * 0 x 0x/ Weighted Avg. Common Shares Outstanding 150,000 35,000,000 x $ 185,000 = $ 0x 0x-5 Per • Note: Enter below, the applicable results from the information above, EXACTLY as shown above. Share 1.48 Dilutive or Anti-dilutive 1.2 Dilutive Dilutive + ✓ + $680,000 340,000 500,000 100,000 300,000 222,000

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 26P
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At the end of the year, the records of Luholtz Corporation show the following. Common stock, no-par, authorized 500,000 shares; issued and outstanding during the year, 100,000 shares. Stock dividend issued, December 31, 50,000 shares (not included in 100,000 shares above) Retained earnings (after effect of dividends on all shares) Bonds payable, 4.5%; each $1,000 bond is convertible to 80 shares of common stock after the stock dividend (bonds issued at par two years prior) Bonds payable, 6.5%; each $1,000 bond is convertible to 90 shares of common stock after the stock dividend (bonds issued at par two years prior) Net income Income tax rate, 25% Required Prepare the required EPS presentation for the year. Basic EPS 4.5% Convertible bonds Adjustment to net income available to common stockholders Adjustment to common shares outstanding Tentative diluted EPS 6.5% Convertible bonds Adjustment to net income available to common stockholders Adjustment to common shares outstanding Tentative diluted EPS Basic earnings per share $ Diluted earning per share $ Net Income Available to Common Stockholders 222,000 ✓ 0 x 0x $ S 202,600 x 222,000 * 0 x 0x/ Weighted Avg. Common Shares Outstanding 150.000 = $ 35,000,000 x 185,000 = $ 0x 0x = $ Per • Note: Enter below, the applicable results from the information above, EXACTLY as shown above. Share 1.48 Dilutive or Anti-dilutive 1.2 Dilutive Dilutive + + ✓ $680,000 340,000 500,000 100,000 300,000 222,000
Transcribed Image Text:At the end of the year, the records of Luholtz Corporation show the following. Common stock, no-par, authorized 500,000 shares; issued and outstanding during the year, 100,000 shares. Stock dividend issued, December 31, 50,000 shares (not included in 100,000 shares above) Retained earnings (after effect of dividends on all shares) Bonds payable, 4.5%; each $1,000 bond is convertible to 80 shares of common stock after the stock dividend (bonds issued at par two years prior) Bonds payable, 6.5%; each $1,000 bond is convertible to 90 shares of common stock after the stock dividend (bonds issued at par two years prior) Net income Income tax rate, 25% Required Prepare the required EPS presentation for the year. Basic EPS 4.5% Convertible bonds Adjustment to net income available to common stockholders Adjustment to common shares outstanding Tentative diluted EPS 6.5% Convertible bonds Adjustment to net income available to common stockholders Adjustment to common shares outstanding Tentative diluted EPS Basic earnings per share $ Diluted earning per share $ Net Income Available to Common Stockholders 222,000 ✓ 0 x 0x $ S 202,600 x 222,000 * 0 x 0x/ Weighted Avg. Common Shares Outstanding 150.000 = $ 35,000,000 x 185,000 = $ 0x 0x = $ Per • Note: Enter below, the applicable results from the information above, EXACTLY as shown above. Share 1.48 Dilutive or Anti-dilutive 1.2 Dilutive Dilutive + + ✓ $680,000 340,000 500,000 100,000 300,000 222,000
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