Question - Colson Corp. had $740,000 net income in 2015. On January 1, 2015 there were 200,000 shares of common stock outstanding. On April 1, 21,800 shares were issued and on September 1, Colson bought 27,000 shares of treasury stock. There are 33,000 options to buy common stock at $40 a share outstanding. The market price of the common stock averaged $50 during 2015. The tax rate is 40%.
During 2015, there were 35,000 shares of convertible preferred stock outstanding. The preferred is $100 par, pays $3.5 a year dividend, and is convertible into three shares of common stock.
Colson issued $2,100,000 of 8% convertible bonds at face value during 2014. Each $1,000 bond is convertible into 30 shares of common stock.
Complete the schedule and compute diluted earnings per share for 2015.