ACC 423 Assignment Solution

Charles Austin of the controller's office of Thompson Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2013. Austin has compiled the information listed below.

1. The company is authorized to issue 7,896,000 shares of 10 par value common stock. As of December 31, 2012, 1,974,000 shares had been issued and were outstanding.

2. The per share market prices of the common stock on selected dates were as follows.

3. A total of 722,400 shares of an authorized 1,414,800 shares of convertible preferred stock had been issued on July 1, 2012. The stock was issued at its par value of 25, and it has a cumulative dividend of 3 per share. The stock is convertible into common stock at...