During Its Fiscal Year, Richards' Distributing Had Net Income of $100,000

During its fiscal year, Richards' Distributing had net income of $100,000 (no extraordinary items) and 50,000 shares of common stock and 10,000 shares of preferred stock outstanding. Richards declared and paid dividends of $.50 per share to common and $6.00 per share to preferred. The preferred stock is convertible into common stock on a share-for-share basis. For the year, Richards Distributing should report diluted earnings (loss) per share of

A) $(0.80) .
B) $1.00.
C) $1.67.
D) $2.67.

Correct Answer:

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