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Compute the earnings per share data

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Problem D-V - Earnings Per Share Computations

Jones, Inc. has net income (30% tax rate) of $1,400,000 for 2015, and an average number of shares outstanding during the year of 500,000 shares. The corporation issued $2,000,000 par value of 10-year, 9% convertible bonds on January 1, 2013 at a $180,000 discount. The convertible bonds are convertible into 70,000 shares of common stock. Assume the company uses the straight-line method for amortizing bond discount.

Instructions

Compute the earnings per share data, excluding any notes if required

Reference no: EM131745774

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