In: Accounting
Bentley has the following information for 2018:
Net income |
$1,200,000 |
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8% convertible $1,000 bonds issued 1/1/15 for $2,140,472 yielding 7% with annual coupons – Due 1/1/25 - Each bond converts to 50 shares of common stock |
$2,000,000 face amount |
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9% convertible, cumulative $100 par preferred stock -Each share converts to 3 shares of common stock |
$3,000,000 |
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Common stock, $10 par |
$5,000,000 |
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Common stock options (granted in 2016) to purchase 60,000 shares of common stock at $20 per share |
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Tax rate |
25% |
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Average market price per share for common stock during the year |
$26 |
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Prepare an amortization schedule first