Selected Accounting Data for JCB for 2014 Were

Selected accounting data for JCB for 2014 were:
(a)Common shares, outstanding shares on January 1, 2014, 80,000.
(b)Preferred shares, $.24, nonconvertible; cumulative; outstanding 5,000 shares.
(c)Preferred shares, $.15, cumulative; convertible-one share of preferred for two shares of common; outstanding 1,500 shares.
(d)Stock options outstanding for 4,000 common shares; option price $20;
(e)Bonds payable, 6%; each $1,000 bond is convertible to 50 common shares, par value outstanding
$40,000.
(f)Net income was $202,400 average income tax rate, 40%.
(g)Company earns interest at 5%.
Required: Determine basic and diluted EPS.

Correct Answer:

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Nonconvertible 5,000 x $.24 = $1,200 Con...

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