Basic and Diluted Earnings Per Share

question 9

Essay

Basic and diluted earnings per share
Throughout the calendar year 2020, Kali Corporation has 400,000 common shares outstanding (no preferred shares issued). In addition, Collie has 5,000, 20-year, 7% bonds outstanding, issued at par in 2018. Each $ 1,000 bond is convertible into 20 common shares after June 30, 2021. Collie reported net income of $ 600,000 for calendar 2020. Their income tax rate is 30%.
Instructions
Calculate basic and diluted earnings per share for 2020.

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Definitions:

Modifiers

Elements or terms used in medical billing and coding to provide additional information about medical procedures, services, or items used in patient care.

Reimbursement

The process of being repaid or compensated for expenses or losses incurred.

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Quantitative Glucose Test

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