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:

Multicellularity

The condition of an organism being composed of more than one cell, which allows for the differentiation of cells into specialized types and forms.

Billion Years

A unit of time equal to 1,000 million years, often used in geology, astronomy, and describing the age and evolution of the Earth and universe.

Millipede

A class of invertebrates characterized by having two pairs of jointed legs on most body segments, known for their slow movement and detritivorous diet.

Tetrapod

Vertebrate animals having four limbs or limb-like appendages, including amphibians, reptiles, birds, and mammals, as well as their extinct ancestors.