A20-31 EPS-Stock Split, Discontinued Operations (LO20.2, L020.3):
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Sea Products Corp. (SPC) reported $6,080,0.00 of earnings from continuing operations for the 20x4 fiscal year, and an after-tax loss from discontinued operations of $7,610,000. Preferred dividends and a common dividend of $1 per share were declared in 20 imes 4. The average common share price was $7 during the period (adjusted for the split; see below), and the tax rate was 35%.
SPC reported the following financial instruments as part of its capital structure at the end of 20X4:
4,900,000 common shares outstanding. Of these, 2,450,000 had been issued as a 2 -for- 1 stock split on 1 October 20X4. The terms of all share contracts were adjusted to reflect the split, and adjusted values are given in the information that follows.
$5,000,000 of bonds payable, convertible into 120,000 common shares beginning in 20x12 at the option of the investor. The bonds are reported as a liability, with a discount, and as an element of equity. Interest paid this year was $240,000, and there was $50,600 of discount amortization recorded.
600,000 preferred shares, with a $2 per share cumulative dividend. There had been 700,000 shares outstanding at the beginning of 20X3. In January, 100,000 shares, with an average issuance price of $625,000, were retired for $699,000.
Options outstanding: 150,000 shares at an option price of $10, exercisable beginning in 20x7; 500,000 shares at an option price of $5, exercisable beginning in 20X12; 200,000 shares at an option price of $4, exercisable beginning in 20x13.
Required:
Calculate required EPS disclosures.
A20-31 EPS-Stock Split,Discontinued Operations (LO20.2, L020.3) ** connect Sea Products Corp. (SPC) reported $6,080,000 of earnings from continuing operations for the 20X4 fiscal year, and an after-tax loss from discontinued operations of $7,610,000.Preferred dividends and a common dividend of $1 per share were declared in 20X4.The average common share price was $7 during the period (adjusted for the split;see below),and the tax rate was 35%. SPC reported the following financial instruments as part of its capital structure at the end of 20X4: 1.4,900,000 common shares outstanding.Of these,2,450,000 had been issued as a 2-for-1 stock split on 1 October 20X4.The terms of all share contracts were adjusted to reflect the split, and adjusted values are given in the information that follows. 2.$5,000,000 of bonds payable, convertible into 120,000 common shares beginning in 20X12 at the option of the investor. The bonds are reported as a liability, with a discount, and as an element of equity. Interest paid this year was $240,000, and there was $50,600 of discount amortization recorded. 3. 600,000 preferred shares,with a $2 per share cumulative dividend.There had been 700,000 shares outstanding at the beginning of 20X3. In January, 100,000 shares, with an average issuance price of $625,000,were retired for $699,000 4.Options outstanding: 150,000 shares at an option price of $10,exercisable beginning in 20X7 500,000 shares at an option price of $5,exercisable beginning in 20X12;200,000 shares at an option price of$4,exercisable beginning in 20X13.
Required: Calculate required EPS disclosures.
