Earnings Per Share ComputationsJones, Inc

question 47

Essay

Earnings Per Share ComputationsJones, Inc. has net income (30% tax rate) of $1,400,000 for 2015, and an average number of shares outstanding during the year of 500,000 shares. The corporation issued $2,000,000 par value of 10-year, 9% convertible bonds on January 1, 2013 at a $180,000 discount. The convertible bonds are convertible into 70,000 shares of common stock. Assume the company uses the straight-line method for amortizing bond discount.
InstructionsCompute the earnings per share data, excluding any notes if required.

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Definitions:

Hidden Negatives

Subtle or indirect negative statements or implications in communication.

Negative

Expressing or suggesting a denial, refusal, or contradiction, or connoting something undesirable or harmful.

Positive Statement

A statement that confirms, affirms, or expresses a positive attitude or outcome.

Hidden Negatives

Subtle or disguised expressions of refusal or disapproval.