At December 31, 2014 and 2013, GHI Had 90 Common

At December 31, 2014 and 2013, GHI had 90 common shares and 20 convertible preferred shares outstanding, in addition to 9% convertible bonds payable in the face amount of $4,000.During 2014, GHI paid dividends of $2.50 per share on the preferred shares (the annual requirement) .The preferred shares are convertible into 20 common shares.The 9% convertible bonds are convertible into 30 common shares.Net income for 2014 was $1,940.Assume an income tax rate of 40%.The earnings per share amounts would be: (Rounded to the nearest cent)

A) Basic $21.56; diluted $15.40.
B) Basic $21.00; diluted $15.40.
C) Basic $21.56; diluted $15.76.
D) Basic $21.00; diluted $15.76.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free