ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 9

is convertible into 40,000 shares of common stock. During
2015, Hanson paid dividends of $.60 per share on the common
stock and $2 per share on the preferred stock. Each $1,000 bond
is convertible into 45 shares of common stock. The net income
for 2015 was $400,000 and the income tax rate was 30%.

Basic earnings per share for 2015 is (rounded to the nearest
penny)

21) Sealy Corporation had the following information in its
financial statements for the years ended 2014 and 2015:

Cash dividends for the year 2015

$5,000

Net income for the year ended 2015 87,000

Market price of stock, 12/31/14

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