At December 31, 20X0, Welsch, Inc., had 500,000 shares of common stock outstanding.  On October 1, 20X1, an additional 120,000 shares of common stock were issued for cash.  Welsch also had $4,000,000 of 8% convertible bonds outstanding at December 31, 20X1, which are convertible into 100,000 shares of common stock.   No bonds were issued or converted into common stock during 20X1.  What is the number of shares that should be used in computing basic earnings per share for the year ended December 31, 20X1?

During 20X7, Moore Corp. had the following two classes of stock issued and outstanding for the entire year:

* 100,000 shares of common stock, $1 par.
* 1,000 shares of 4% preferred stock, $100 par, convertible share for share into common stock.

Moore's 20X7 net income was $900,000, and its income tax rate for the year was 30%.  In the computation of diluted earnings per share for 20X7, the amount to be used in the numerator is

Timp, Inc. had the following common stock balances and transactions during 20X1:

1/1/20X1	Common stock outstanding	30,000
4/1/20X1	Issued common stock for cash	9,000
5/1/20X1	Issued a 10% common stock dividend	3,900
7/1/20X1	Issued common stock for cash	8,000
12/31/20X1	Common stock  outstanding	50,900

What was Timp's 20X1 weighted average shares outstanding?

In a diluted earnings per share computation, the treasury stock method is used for options and warrents to reflect assumed reacquisition of common stock at the average market during the period.  If the exercise price of the options or warrants exceeds the average market price, the computation would

Peters Corp.'s capital structure was as follows:

	December 31
		20X8		20X9
Outstanding shares of stock:
Common		110,000		110,000
Convertible preferred		10,000		10,000
8% convertible bonds		$1,000,000		$1,000,000

During 20X9, Peters paid dividends of $3.00 per share on its preferred stock.  The preferred shares are convertible into 20,000 shares of common stock.  The 8% bonds are convertible into 30,000 shares of common stock. Net income for 20X9 was $850,000.  Assume that the income tax rate is 30%.

The basic earnings per share for 20X9 is

The diluted earnings per share for 20X9 is

Ute Co. had the following capital structure during 20X3 and 20X4:

Preferred stock, $10 par, 4% cumulative, 25,000 shares issued and outstanding	$   250,000
Common stock, $5 par, 200,000 shares issued and outstanding	$1,000,000

Ute reported net income of $500,000 for the year ended December 31, 20X4.  Ute paid $16,000 in preferred dividends during 20X4.  In its December 31, 20X4, income statement, what amount should Ute report as earnings per share?

In determining earnings per share, interest expense, net of applicable income taxes, on convertible debt which is dilutive should be

In determining basic earnings per share in a complex capital structure, which of the following would impact the calculation?

    Nonconvertible     
preferred stock       Stock options

On January 31, 20X2, Pack, Inc. split its common stock 2 for 1, and Young, Inc. issued a 5% stock dividend.  Both companies issued their December 31, 20X1, financial statements on March 1, 20X2.  Should Pack's 20X1 earnings per share (EPS) take into consideration the stock split, and should Young's 20X1 EPS take into consideration the stock dividend?

            Pack's           Young's
       20X1 EPS       20X1 EPS