Determine what is diluted earnings per share

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Question 1: On December 31, 2020, S Corporation had 100,000 shares of common stock and 20,000 shares of 8%, $100 par value cumulative preferred stock, convertible into 37,000 shares of common stocks, issued and outstanding. In 2019, $1,000,000 of 9% bonds, convertible into 20,000 common shares, were issued at face value. Net income for the year ended December 31, 2021, is $600,000. The income tax rate is 30%. What is 2021 diluted earnings per share?

  • 4.19
  • $4.20

Reference no: EM132523378

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