Krane,IncReported Net Income (Amounts in Thousands)of $619,700 for Year 4

question 23

Essay

Krane,Inc.reported net income (amounts in thousands)of $619,700 for Year 4.The weighted average of common shares outstanding during Year 4 was 468,810 shares.Krane Inc.,subtracted interest expense net of tax saving on convertible debt of $4,820.If the convertible debt had been converted into common stock,it would have increased the weighted average common shares outstanding by 20,905 shares.Krane Inc.,has outstanding stock options that,if exercised,would increase the weighted average of common shares outstanding by 7,335 shares.
REQUIRED:
Compute basic and diluted earnings per share for Year 4,showing supporting computations.

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Definitions:

Enforce

To compel obedience to a law, rule, or obligation through the imposition of penalties or other legal mechanisms.

Warranty Liability

Legal obligation of a seller to compensate the buyer for losses caused by defects or failures in the product warranted.

In Blank

Pertains to a document, especially a financial instrument, left partially unfilled or unsigned, allowing for details to be added later.

Transfer Warranties

Legal assurances provided during the transfer of assets, ensuring certain conditions or elements are true or will be upheld.