Krane,IncReported Net Income (Amounts in Thousands)of $619,700 for Year 4

question 88

Essay

Krane,Inc.reported net income (amounts in thousands)of $619,700 for Year 4.Included in net income was income tax expense of $10,400.During the year the company paid the preferred shareholders $9,000 in dividends.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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