Q: On January 1, 2017, Draper Inc. issued $4
On January 1, 2017, Draper Inc. issued $4 million of face value, fi ve-year, 6% bonds at par. Each $1,000 bond is convertible into 20 common shares. Draper’s net income in 2017 was $200,000, and its t...
See AnswerQ: On January 1, 2017, Fine Corp., which follows IAS
On January 1, 2017, Fine Corp., which follows IAS 17, signs a 10-year, non-cancellable lease agreement to lease a specialty loom from Sheffield Corporation. The following information concerns the leas...
See AnswerQ: Mininova Corporation is preparing earnings per share data for 2017. The
Mininova Corporation is preparing earnings per share data for 2017. The net income for the year ended December 31, 2017 was $400,000 and there were 60,000 common shares outstanding during the entire y...
See AnswerQ: Use the same information as in E17-13, except for
Use the same information as in E17-13, except for the changes in part (c). Assume instead that 40% of the convertible bonds were converted to common shares on April 1, 2017. Instructions: (a) Calcula...
See AnswerQ: Hayward Corporation had net income of $50,000 for the
Hayward Corporation had net income of $50,000 for the year ended December 31, 2017, and weighted average number of common shares outstanding of 10,000. The following information is provided regarding...
See AnswerQ: Standard Corp’s net income for 2017 is $150,000.
Standard Corp’s net income for 2017 is $150,000. The only potentially dilutive securities outstanding were 1,000 call options issued during 2016, with each option being exercisable for one share at $2...
See AnswerQ: Howard Corporation earned $480,000 during a period when it
Howard Corporation earned $480,000 during a period when it had an average of 100,000 common shares outstanding. The common shares sold at an average market price of $23 per share during the period. Al...
See AnswerQ: On December 31, 2017, Master Corp. had a $
On December 31, 2017, Master Corp. had a $10-million, 8% fixed-rate note outstanding that was payable in two years. It decided to enter into a two-year swap with First Bank to convert the fixed-rate d...
See AnswerQ: Brush Inc. recently purchased Paint Pro, a large home-
Brush Inc. recently purchased Paint Pro, a large home-painting corporation. One of the terms of the merger was that if Paint Pro’s net income for 2018 was $110,000 or more, 10,000 additional shares wo...
See AnswerQ: On January 1, 2017, Waldorf Corporation granted 40,000
On January 1, 2017, Waldorf Corporation granted 40,000 options to key executives. Each option allows the executive to purchase one share of Waldorf’s common shares at a price of $30 per share. The opt...
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