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:

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of that good that suppliers are willing and able to provide.

Gas Prices

The cost per unit of gasoline, which fluctuates based on factors such as crude oil prices, taxes, demand, and refinery capabilities.

Equilibrium Quantity

At the market price, the supply of goods or services is equivalent to the demand.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market balance.