Blossom Inc. has 1.10 million common shares outstanding as at January 1, 2020. On June...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Blossom Inc. has 1.10 million common shares outstanding as at January 1, 2020. On June 30, 2020,4% convertible bonds were converted into 105,000 additional shares. Up to that point, the bonds had paid interest of $235,000 after tax. Net income for the year was $1,299,218. During the year, the company issued the following: 1. June 30: 12,250 call options giving holders the right to purchase shares of the company for $30 2. Sept. 30: 17,250 put options allowing holders to sell shares of the company for $25 On February 1, Blossom also purchased in the open market 12,250 call options on its own shares, allowing it to purchase its own shares for $27. Assume the average market price for the shares during the year was $35. (a) Calculate the required EPS numbers under IFRS. For simplicity, ignore the impact that would result from the convertible debt being a hybrid security. (Round answers to 2 decimal places, e.g. 15.25.) Basic EPS $ Diluted EPS $
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
