Question 1: For the year ended December 31, 2008, Oliver Company should report interest revenue from the McGee Co. bonds of:
A) $42,392.
B) $41,409.
C) $41,368.
D) $40,000.
Use the following to answer questions:
Assume that the following data relative to Eddy Company for 2007 is available:
Net Income $2,100,000
Transactions in Common Shares
Jan. 1, 2007, Beginning number 700,000
Mar. 1, 2007, Purchase of treasury shares (60,000)
June 1, 2007, Stock split 2-1 640,000
Nov. 1, 2007, Issuance of shares 120,000
8% Cumulative Convertible Preferred Stock
Sold at par, convertible into 200,000 shares of common $1,000,000
Stock Options
Exercisable at the option price of $25 per share. Average market price in 2007, $30 ... 60,000 shares
Question 2: What is the basic earnings per share for 2007. (Round to two decimals places.)
Question 3: What is the diluted earnings per share for 2007. (Round to two decimals places.)