Solution for QID #24680: Vaughn Manufacturing had 194000 shares of common stock, 2020 | StudyHelpMe

Vaughn Manufacturing had 194000 shares of common stock, 20200 shares of convertible preferred stock, and $1504000 of 5% convertible bonds outstanding during 2021. The preferred stock is convertible into 40300 shares of common stock. During 2021, Vaughn paid dividends of $0.90 per share on the common stock and $2 per share on the preferred stock. Each $1,000 bond is convertible into 30 shares of common stock. The net income for 2021 was $610000 and the income tax rate was 30%. Basic earnings per share for 2021 is (rounded to the nearest penny) O $2.60. O $2.30. O $2.94. O $2.52. Concord Corporation had 201000 shares of common stock, 19100 shares of convertible preferred stock, and $597000 of 10% convertible bonds outstanding during 2021. The preferred stock is convertible into 40100 shares of common stock. During 2021, Concord paid dividends of $0.56 per share on the common stock and $1.70 per share on the preferred stock. Each $1,000 bond is convertible into 45 shares of common stock. The net income for 2021 was $355000 and the income tax rate was 35%. Diluted earnings per share for 2021 is (rounded to the nearest penny) O $1.37. O $1.55. O $1.47. O $1.33.