1 On January 1st 2015, The Bond James Bond (BJB) Company purhcased all of the voting stock of the Spectre Company at book value2 At the beginning of 2022, Spectre Company issued 500 shares of 6% cumulative preferred stock3 On December 31st 2022 BJB and Spectre had the following (note: there were no transactions between Spectre and BJB in 2022)456789101112131415161718192021222324252627282930Commonstock $1 paradditional pic commonpreferred stock $100 parretained earningsSalesexpensesnet incomeBJB50000100000Part 1: In 2022 (no transactions between the 2 companies)BJB0salesexpensesnet income8000001000004000060000Required: Calculate BJB's earnings per share (EPS) for 2022Part 2: In 2022 (no transactions between the 2 companies)BJB1000004000060000Spectre5000500050,00020000Spectre300001200018000Spectre300001200018000Required: the preferred stock is convertible where each share of preferred stock can be converted into2 shares of Spectre Common stock. Calculate BJB's earning per share (EPS) for 2022

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1 On January 1st 2015, The Bond James Bond (BJB) Company purhcased all of the voting stock of the Spectre Company at book value 2 At the beginning of 2022, Spectre Company issued 500 shares of 6% cumulative preferred stock 3 On December 31st 2022 BJB and Spectre had the following (note: there were no transactions between Spectre and BJB in 2022) 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Commonstock $1 par additional pic common preferred stock $100 par retained earnings Sales expenses net income BJB 50000 100000 0 Part 1: In 2022 (no transactions between the 2 companies) BJB sales expenses net income 800000 100000 40000 60000 Required: Calculate BJB's earnings per share (EPS) for 2022 Part 2: In 2022 (no transactions between the 2 companies) BJB 100000 40000 60000 Spectre 5000 5000 50,000 20000 Spectre 30000 12000 18000 Spectre 30000 12000 18000 Required: the preferred stock is convertible where each share of preferred stock can be converted into 2 shares of Spectre Common stock. Calculate BJB's earning per share (EPS) for 2022

1 On January 1st 2015, The Bond James Bond (BJB) Company purhcased all of the voting stock of the Spectre Company at book value 2 At the beginning of 2022, Spectre Company issued 500 shares of 6% cumulative preferred stock 3 On December 31st 2022 BJB and Spectre had the following (note: there were no transactions between Spectre and BJB in 2022) 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Commonstock $1 par additional pic common preferred stock $100 par retained earnings Sales expenses net income BJB 50000 100000 0 Part 1: In 2022 (no transactions between the 2 companies) BJB sales expenses net income 800000 100000 40000 60000 Required: Calculate BJB's earnings per share (EPS) for 2022 Part 2: In 2022 (no transactions between the 2 companies) BJB 100000 40000 60000 Spectre 5000 5000 50,000 20000 Spectre 30000 12000 18000 Spectre 30000 12000 18000 Required: the preferred stock is convertible where each share of preferred stock can be converted into 2 shares of Spectre Common stock. Calculate BJB's earning per share (EPS) for 2022

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 10MC

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