3. At January 1, 2017 the Leon White Company had 400,000 shares of common stock...
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3. At January 1, 2017 the Leon White Company had 400,000 shares of common stock outstanding. The only 2017 common stock related transaction occurred on November 1, 2017 when White sold an additional 100,000 shares. Net income for 2017 was $2,565,000; the income tax rate was 40%. White had the following securities on its books for the year ended December 31, 2017: (a) 20,000 shares of $100 par 10% nonconvertible, cumulative preferred stock. Stock was sold at 102 (b) 30,000 shares of 8% convertible, cumulative preferred stock, par $100, sold at l 10, Each share of preferred stock is convertible into two shares of common. (c) $2,000,000 face value of 800 nonconvertible bonds payable sold at par. (d) $3,000,000 face value of 6% convertible bonds payable sold at par. Each $1,000 bond is convertible into 20 shares of common. (e) Options to purchase 10,000 common stock shares were issued Jan. 1,2017. Option price was $30 per share; market value at end of year, $40, average market value Jan. 1 to December 31, 2017, S35. Compute the required EPS figure(s) for 2017
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