Selected Accounting Data for JCB for 2014 Were

question 129

Essay

Selected accounting data for JCB for 2014 were:
(a)Common shares, outstanding shares on January 1, 2014, 80,000.
(b)Preferred shares, $.24, nonconvertible; cumulative; outstanding 5,000 shares.
(c)Preferred shares, $.15, cumulative; convertible-one share of preferred for two shares of common; outstanding 1,500 shares.
(d)Stock options outstanding for 4,000 common shares; option price $20;
(e)Bonds payable, 6%; each $1,000 bond is convertible to 50 common shares, par value outstanding
$40,000.
(f)Net income was $202,400 average income tax rate, 40%.
(g)Company earns interest at 5%.
Required: Determine basic and diluted EPS.

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Definitions:

Nutritional Quality

The value of food determined by its nutrient composition and its contribution to the diet.

Cash Subsidy

A form of financial aid or support from the government to individuals or organizations, often intended to encourage certain activities or reduce the cost burden.

Low Income Families

Households earning significantly less than the average income level, often facing financial challenges in meeting basic needs such as food, shelter, and healthcare.

Indifference Curves

Graphical representations in microeconomics illustrating combinations of various goods between which a consumer is indifferent.