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Gray Corporation Reported $500,000 in Interest Expense for the Current

Question 18

Multiple Choice

Gray Corporation reported $500,000 in interest expense for the current year for bonds that were issued in prior years. Gray's tax rate is 40%. By what amount is the numerator of diluted EPS positively adjusted?


A) $0
B) $200,000
C) $300,000
D) $500,000

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