Multiple Choice
Austin Products reported $340,000 net income for the year with 100,000 common shares outstanding all year. Austin issued 26,000 shares of $100, 8% convertible preferred shares on March 1. Each preferred share is convertible into 10 shares of common stock. Determine the numerator for both basic and diluted EPS. (Do not round any intermediate calculations. Round your final answers to the nearest dollar.)
A) basic EPS $305,333; diluted EPS $166,667
B) basic EPS $305,333; diluted EPS $132,000
C) basic EPS $340,000; diluted EPS $340,000
D) basic EPS $166,667; diluted EPS $340,000
Correct Answer:
Verified
Correct Answer:
Verified
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