Abc inc had 50000 shares of common stocks outstanding at


ABC, Inc. had 50,000 shares of common stocks outstanding at January 1, 2013. On March 31,2013, an additional 12,000 shares were sold for cash. Megan also had $4,000,000 of 6% convertible bonds outstanding throughout the year. The bonds are convertible into 40,000 shars of common stock. Net income for the year was $350,000. The tax rate is 35%.

Required: Compute basic earnings per share (rounded to 2 decimal places for the year ended December 31, 2013)

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Financial Accounting: Abc inc had 50000 shares of common stocks outstanding at
Reference No:- TGS01050402

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