Assignment ATE AULODNTING (ACT 331/3 tice Gradebook ORION Downloadable eTextbook ment CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Problem 16-7 Charles Austin of the controller’s office of Monty Corporation was given the assignment of determining the basic and diluted earnings per 31, 2018. Austin has compiled the information listed below. 1. The company is authorized to issue 8,120,000 shares of $10 par value common stock. As of December 31, 2017, 2,030,0 2. The per share market prices of the common stock on selected dates were as follows. July 1, 2017 January 1, 2018 April 1, 2018 July 1, 2018 August 1, 2018 November 1, 2018 December 31, 2018 Price per Share $20.00 21.00 25.00 11.00 10.50 9.00 10.00 3. A total of 722,400 shares of an authorized 1,092,000 shares of convertible preferred stock had been issued on July 1, 2017. The stock was issued at its par value of $25.00, and it has a cumulative dividend of $3 per share. The stock is conversion is to be automatically adjusted for stock splits and stock dividends. Dividends are paid quarterly on September 30, December 31, March 31, and June 30 convertible into common stock at the rate of one share of convertible preferred for one share of common. The rate of 4, Monty Corporation is subject to a 40% income tax rate 5. The after-tax net income for the year ended December 31, 2018, was $11,160,000. The following specific activities took place during 2018. 1, January 1-A 5% common stock dividend was issued. The dividend had been declared on December 1, 2017, to all stockholders of record on December 29, 2017 April 1-A total of 366,000 shares of the $3 convertible preferred stock was converted into common stock. The company issued new common stock and retired the preferred stock. This was the only conversion of the preferred stock during 2018 2. acy Policy l All Rights Reserved, A Division of 1ohn Wiley& Sons Ins Version 4.24.1.23
