Problem 19-17 EPS; options; convertible preferred; additional
shares [LO19-4, 19-5, 19-6, 19-7, 19-8, 19-9]
On January 1, 2018, Tonge Industries had outstanding 460,000
common shares ($1 par) that originally sold for $25 per share, and
5,000 shares of 10% cumulative preferred stock ($100 par),
convertible into 50,000 common shares.
On October 1, 2018, Tonge sold and issued an additional 12,000
shares of common stock at $35. At December 31, 2018, there were
21,000 incentive stock options outstanding, issued in 2017,...