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In: Accounting

During 2021, Johnon Company had 100,000 shares of $5 par value common stock and 5,000 shares...

During 2021, Johnon Company had 100,000 shares of $5 par value common stock and 5,000 shares of 5%, $100 par value convertible preferred stock outstanding. Each share of preferred stock may be converted into three shares of common stock. Johnson Company’s 2021 net income was $1,800,000.

a. compute the basic earnings per share fore 2021

b. compute diluted earnings per share for 2021.

Solutions

Expert Solution

basic earnings per share (BEPS) state the amount of earnings on per outstanding share of a company.

Diluted Earnings per share(DEPS) state the dilution in BEPS due to potential conversion in common stock

ekkarill92 answered 1 year ago
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