Chapter 16: Q23E (page 880)
(EPS with Convertible Bonds) On June 1, 2015, Andre Company and Agassi Company merged to form Lancaster Inc. A total of 800,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis.On April 1, 2017, the company issued an additional 400,000 shares of stock for cash. All 1,200,000 shares were outstanding on December 31, 2017.Lancaster Inc. also issued
Instructions
Determine the following for 2017.
(a) The number of shares to be used for calculating:
(1) Basic earnings per share.
(2) Diluted earnings per share.
(b) The earnings figures to be used for calculating:
(1) Basic earnings per share.
(2) Diluted earnings per share
Short Answer
a.
(1) Basic earnings per share= 1,100,000
(2) Diluted earnings per share= 1,112,000
b.
(1) Basic earnings per share= $1,540,000
(2) Diluted earnings per share= $1,554,400