View the step-by-step solution to:

On January 1, 2011, Tonge Industries had outstanding 450,000 common shares (par $1) that originally sold for $20 per share, and 4,000 shares of 10%

On January 1, 2011, Tonge Industries had outstanding 450,000 common shares (par $1) that originally sold for $20 per share, and 4,000 shares of 10% cumulative preferred stock (par $100), convertible into 40,000 common shares.

On October 1, 2011, Tonge sold and issued an additional 22,000 shares of common stock at $33. At December 31, 2011, there were common stock options outstanding, issued in 2010, and exercisable after one year for 20,000 shares of common stock at an exercise price of $31. The market price of the common stock at year-end was $48. During the year the price of the common shares had averaged $40.

Net income was $525,000. The tax rate for the year was 40%.

Required:
Compute basic and diluted EPS for the year ended December 31, 2011. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Basic EPS $
Diluted EPS $
Sign up to view the entire interaction

Top Answer

Dear Student Please find... View the full answer

Accounting - 8225426.doc

On January 1, 2011, Tonge Industries had outstanding 450,000 common shares (par $1) that originally sold for $20 per share, and 4,000 shares of 10% cumulative preferred stock (par $100),...

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online