The following information is relevant to the computation of Pharm Co.'s earnings per share to be disclosed on Pharm's income statement for the year ending December 31: Net income for Year 2 is $800,000. $4,000,000 face value 10-year convertible bonds outstanding on January 1. The bonds were issued four years ago at a premium that is being amortized in the amount of $28,000 per year. The stated rate of interest on the bonds is 8%, and the bonds were issued to yield 7%. Each $1,000 bond is convertible into 70 shares of Pharm's common stock. Preferred stock, $10 par, 4% cumulative, 15,000 shares issued and outstanding. No dividend is declared for Year 2. Pharm's corporate income tax rate is 20%. What amount should be used as the numerator in the fraction used to compute Pharm's diluted earnings per share assuming that the bonds are dilutive securities

The owners of backstreets italian restaurant are considering starting a delivery service forpizza and their other italian dishes in the small college town where they are located. theycan purchase a used delivery van and have it painted with their name and logo for $21,500.they can hire part-time drivers who will work in the evenings from 5 p.m. to 10 p.m. for$8 per hour. the drivers are mostly college students who study at the restaurant when theyare not making deliveries. during the day, there are so few deliveries that the regular employeescan handle them. the owners estimate that the van will last 5 years (365 days per year)before it has to be replaced and that each delivery will cost about $1.35 in gas and othermaintenance costs (including tires, oil, scheduled service, they also estimate that onaverage each delivery order will cost $15 for direct labor and ingredients to prepare andpackage, and will generate $34 in revenue.a. how many delivery orders must backstreets make each month in order for the service to break even? b. the owners believe that if they have approximately the break-even number of deliveries during the week, they will at least double that number on fridays, saturdays, and sundays. if that’s the case, how much profit will they make, at a minimum, from their delivery service each month (4 weeks per month)?

Why do you think the compensation plans differ at the two firms? in particular, why do you think kaufmann’s pays commissions to salespeople, while parkleigh does not? why does parkleigh offer employees discounts on purchases, while kaufmann’s does not?

In 2015, lori assigned a paid-up whole life insurance policy to an irrevocable life insurance trust (ilit) for the benefit of her three children. the ilit contained a crummey provision for the benefit of each child. at the time of the transfer, the whole life insurance policy was valued at $200,000, and since lori had not made any other taxable gifts during her lifetime, she did not owe any gift tax. lori died in 2016, and the face value of the whole life insurance policy of $2,000,000 was paid to the ilit. regarding this transfer, how much is included in lori’s gross estate at her death?