Fox, Ltd. reported $815,000 net income for 2018. Fox has $5,250,000, 7% converti

Question

Fox, Ltd. reported $815,000 net income for 2018. Fox has $5,250,000, 7% convertible debt issued at par and $195,000 par value, 3% nonconvertible, noncumulative preferred shares outstanding. The firm declared a total of $12,500 dividends for the current year. Fox issued the bonds on April 1 and the preferred shares were outstanding for the entire year. What is the net income available to common shareholders for basic earnings per share. $809,150 $802,000 $539,375 $815,000


On April 25, 2018, Fox Co. issues $350,000, 7%, 6-year bonds at 93. These bonds pay interest semiannually on each October 25th and April 25th, and Fox will use effective interest amortization. Which of the following represents how Fox's financial statements change based on Fox's entry on the date of this issuance. Assets: Increase / Liabilities: Increase / SE: No Effect / NI: No Effect Assets: Increase / Liabilities: Increase / SE: Decrease / NI: Decrease Assets: Increase / Liabilities: Decrease / SE: No Effect / NI: No Effect Assets: Decrease / Liabilities: Decrease / SE: No Effect / NI: No Effect Fox, Ltd. reported $815,000 net income for 2018. Fox has $5,250,000, 7% convertible debt issued at par and $195,000 par value, 3% nonconvertible, noncumulative preferred shares outstanding. The firm declared a total of $12,500 dividends for the current year. Fox issued the bonds on April 1 and the preferred shares were outstanding for the entire year. What is the net income available to common shareholders for basic earnings per share. $809,150 $802,000 $539,375 $815,000


On April 25, 2018, Fox Co. issues $350,000, 7%, 6-year bonds at 93. These bonds pay interest semiannually on each October 25th and April 25th, and Fox will use effective interest amortization. Which of the following represents how Fox's financial statements change based on Fox's entry on the date of this issuance. Assets: Increase / Liabilities: Increase / SE: No Effect / NI: No Effect Assets: Increase / Liabilities: Increase / SE: Decrease / NI: Decrease Assets: Increase / Liabilities: Decrease / SE: No Effect / NI: No Effect Assets: Decrease / Liabilities: Decrease / SE: No Effect / NI: No Effect Fox, Ltd. reported $815,000 net income for 2018. Fox has $5,250,000, 7% convertible debt issued at par and $195,000 par value, 3% nonconvertible, noncumulative preferred shares outstanding. The firm declared a total of $12,500 dividends for the current year. Fox issued the bonds on April 1 and the preferred shares were outstanding for the entire year. What is the net income available to common shareholders for basic earnings per share. $809,150 $802,000 $539,375 $815,000


On April 25, 2018, Fox Co. issues $350,000, 7%, 6-year bonds at 93. These bonds pay interest semiannually on each October 25th and April 25th, and Fox will use effective interest amortization. Which of the following represents how Fox's financial statements change based on Fox's entry on the date of this issuance. Assets: Increase / Liabilities: Increase / SE: No Effect / NI: No Effect Assets: Increase / Liabilities: Increase / SE: Decrease / NI: Decrease Assets: Increase / Liabilities: Decrease / SE: No Effect / NI: No Effect Assets: Decrease / Liabilities: Decrease / SE: No Effect / NI: No Effect On April 25, 2018, Fox Co. issues $350,000, 7%, 6-year bonds at 93. These bonds pay interest semiannually on each October 25th and April 25th, and Fox will use effective interest amortization. Which of the following represents how Fox's financial statements change based on Fox's entry on the date of this issuance. Assets: Increase / Liabilities: Increase / SE: No Effect / NI: No Effect Assets: Increase / Liabilities: Increase / SE: Decrease / NI: Decrease Assets: Increase / Liabilities: Decrease / SE: No Effect / NI: No Effect Assets: Decrease / Liabilities: Decrease / SE: No Effect / NI: No Effect

Explanation / Answer

As per chegg guidelines when there are more than one question then we have to answer first question.

Calculation of earning available to common shareholders:

Earning available to common shareholders= Net income- preference dividend

                                                             = 815000-(195000*0.03)= 815000-5850=$809150

So correct answer is $809150

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