Compute basic and diluted eps for the year ended december, Ask an Expert

Accounting

At December 31, 2009, the financial statements of Hollingsworth Industries included the following:

Net income for 2009 $560 million
Bonds payable, 10%, convertible into 36 million shares of common stock $300 million

Common stock:

Shares outstanding on January 1 400 million
Treasury shares purchased for cash on September 1 30 million

Additional data:
The bonds payable were issued at par in 2007. The tax rate for 2009 was 40%

Required:

Compute basic and diluted EPS for the year ended December 31, 2009.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9417648

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