At December 31,2013,GHI Had 400 Common Shares Outstanding

At December 31,2013,GHI had 400 common shares outstanding.On October 1,2014,an additional 100 common shares were issued.In addition,GHI had $40,000 of 8 percent,convertible bonds outstanding at December 31,2013,which are convertible into 225 common shares.No bonds were converted into common shares in 2014.Net income for the year ended December 31,2014,was $14,000.Assuming the income tax rate was 50 percent,the diluted earnings per share for the year ended December 31,2014 should be (rounded to the nearest cent) :

A) $24.00
B) $25.54
C) $32.94
D) $36.71

Correct Answer:

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