30) Miami Co. had 400,000 shares of common stock, 40,000 shares of convertible preferred stock,...
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30) Miami Co. had 400,000 shares of common stock, 40,000 shares of convertible preferred stock, and $4,000,000 of 5% convertible bonds outstanding during 2021. The preferred stock is convertible into 80,000 shares of common stock. During 2021, Miami paid dividends of $.80 per share on the common stock and $5 per share on the preferred stock. Each $1,000 bond is convertible into 40 shares of common stock. The net income for 2021 was $500,000 and the income tax rate was 30%. Diluted earnings per share for 2021 is?
7) On January 1, 2015, Red Company issued an 8% callable bond which has a par value of $200,000 for $185,000. The bond is callable at 106 any time after January 1, 2020. The entire bond was called back on January 1, 2021 when the unamortized discount had a balance of $4,500. Compute the amount of the gain or loss when the bond was retired on January 1, 2021.
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