stock was trading at $25 per share, and a fair value option-pricing
model determines total compensation to be $400,000.
E16-22(EPS with Convertible Bonds, Various Situations)
In 2013, Chirac Enterprises issued, at par, 60 $1,000, 8% bonds,
each convertible into 100 shares of common stock. Chirac had
revenues of $17,500 and expenses other than interest and taxes of
$8,400 for 2014. (Assume that the tax rate is 40%.) Throughout
2014, 2,000 shares of common stock were outstanding; none of the
bonds was converted or redeemed.
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ACCT 551 Week 7 Homework E17-7, E17-9, E17-15
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E17-7 (Trading Securities Entries) On December 21, 2013, Bucky
Katt Company provided you with the following information
regarding its trading securities.