Calculate beps and deps

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Question - Montoni Corp. had 15,000 shares of common stock outstanding throughout the entire year. On July 1 of this year, Montoni issued $2 million of 10% bonds convertible into 10,000 shares of common stock. The bonds are considered to be dilutive potential common stock. Montoni had no other securities outstanding. What is the number of shares that Montoni should use to calculate BEPS and DEPS, respectively?

A.15,000 and 20,000.

B.15,000 and 15,000.

C.20,000 and 20,000.

D. Cannot be determined from the given information.

Reference no: EM133055516

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