Extra Credit Homework
Order ID: 89JHGSJE83839 Style: APA/MLA/Harvard/Chicago Pages: 5-10 Instructions:
Chapter 16 Extra Credit Homework?
1. Amy Chang of the controllers office of Thompson Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2017. Amy has complied the information listed below.
1. The after-tax net income for the year ended December 31, 2017, was $15,000,000. The income tax rate is 40%.?
2. The company is authorized to issue 10,000,000 shares of $10 par value common stock. As of December 31, 2016, 2,000,000 shares had been issued and were outstanding.
3. A total of 1,000,000 shares of an authorized 1,200,000 shares of convertible preferred stock had been issued on August 1, 2016. The stock was issued at its par value of $25, and it has a stated dividend of $3 per share per year. The stock is convertible into common stock at the rate of one share of convertible preferred for one share of common. The rate of conversion is to be automatically adjusted for stock splits and stock dividends. Dividends are paid semiannually on July 1 and January 1 to all stockholders of record on June 29 and December 29 respectively.????
4. The company issued a 10% convertible debenture bonds sold at 100 (total $100,000) on January 1, 2017 and convertible into 30,000 common shares. The interest is paid annually on December 31. The rate of conversion is to be automatically adjusted for stock splits and stock dividends.
5. The common stock options were granted and exercisable in 2016 to purchase 60,000 shares of common stock at the option price of $25 per share.? The average market price of common stock is $30 per share in 2017. Assume the market price, option price and granted number of shares are to be automatically adjusted for stock dividend and split.
The following specific activities took place during 2017.
(1) February 1: A 5% common stock dividend was issued. The dividend had been declared on December 1, 2016, to all stockholders of record on December 31, 2016.
(2) April 1: A 2-for-1 split of the common stock became effective on this date.
(3) August 1: A total of 300,000 shares of common stock were issued to acquire a building.
(4) October 1: 50% of the convertible debenture bonds were converted to common shares.?
(5) November 1: A total of 24,000 shares of common stock were purchased on the open market at $9 per share. These shares were to be held as treasury stock and were still in the treasury as of December 31, 2017.
(6) Preferred stock cash dividends Cash dividends to preferred stockholders were declared and paid as scheduled.?
Instructions
(a) Compute the basic earnings per share for the year ended December 31, 2017.
(b) Compute the diluted earnings per share for the year ended December 31, 2017. ??
RUBRIC
Excellent Quality
95-100%
Introduction 45-41 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Literature Support
91-84 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Methodology
58-53 points
Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met.
Average Score
50-85%
40-38 points
More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided.
83-76 points
Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration.
52-49 points
Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met.
Poor Quality
0-45%
37-1 points
The background and/or significance are missing. No search history information is provided.
75-1 points
Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration.
48-1 points
There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met
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Extra Credit Homework