On December 31, 2020, Brisbane Company had 100,000 shares of common stock outstanding and 32,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2021, Brisbane purchased 26,000 shares of common stock on the open market as treasury stock paying $42 per share. Brisbane sold 6,200 treasury shares on September 30, 2021, for $47 per share. Net income for 2021 was $182,905. Also outstanding during the year were fully vested incentive stock options giving key officers the option to buy 52,000 common shares at $42. The market price of the common shares averaged $52 during 2021. Required:
Compute Brisbane's basic and diluted earnings per share for 2021. (Round your answers to 2 decimal places.)

Answer and Explanation:

The computation of the basic and diluted earning per share is given below:

For Basic EPS

Given that

Income for 2016 = 182,905

Income after 7% dividend on cumulatie peference share is

= 182,905 - ( 7% × 1,600,000)

= $ 70,905

And,  

Outstanding shares is

= 100,000 - (26,000 × 10 ÷ 12) + ( 6,200 × 3 ÷12 )

= 79,884

So,  

Basic earning per share is

= $70,905 ÷ 79,884

= $0.89 per share

For Diluted EPS

Outstanding shares is

= 79,884 + 10,000

= 89,884

So,

Diluted EPS is

= $70,905 ÷ 89,884

= $0.79 per share

Working note

Option to be exercised = 52,000 shares

So,

shares to be bought back with proceeds = (52,000 × 42) ÷ 52 = 42,000 shares

so difference should be of 10,000 shares

sound is invisible, but sometimes we can feel it. when a kettle-drum is thumped with a stick that time the tight drum skin moving up and down very quickly for some time and then it pumped sound waves into the air. loudspeakers also work in a similar manner.

components of a speaker:

electromagnet

in order to translate an electrical signal into an audible sound, an electromagnet is used in looudspeakers

  suspension

suspension is used to   center the voice coil in the gap of the magnet and it exerts a restoring force to keep it there. suspension is used to limits the maximum mechanical excursion of the diaphragm and voice coil.

voice coil

voice coil is a coil of wire which is attached to the apex of a loudspeaker cone. it provides the motive force to the cone by the reaction of a magnetic field to the current passing through it.

cone

in a   loudspeaker, a   thin, semi-rigid membrane attached to the voice coil, which moves in a magnetic gap due to which it vibrates   and produced sound. it is known as diaphragm and it can also be called a cone, though not all speaker diaphragms are cone-shaped.

surround

surround is also known as front suspension. surround is used to join the cone to the chassis. together with the suspension it controls the cone excursion, and it is also used to   determine how energy which is   travelling through the cone is absorbed, and how the speaker limits when it reaches the ends of its travel.

dustcap

dustcap is used to protect the voice coil from dust and dirt. it is a part of the cone.

how speaker work

the outer part of the cone is fastened to the outer part of the loudspeaker's circular metal rim. the inner part is fixed to   voice coil that sits just in front of a permanent magnet . when loudspeaker is hooked up to a stereo, electrical signals feed through the speaker cables into the coil. it will convert the coil into an electromagnet magnet . when electricity flows back and forth in the cables, the electromagnet either repels or attract the permanent magnet. this moves the coil back and forth, and it pull and push the loudspeaker cone. like a drum skin vibrating back and forth, the moving cone pumps sounds out into the air.in this way loudspeakers works.

d. automatic stabilizers.

explanation: