At December 31,2014 and 2013,GHI Had 90 Common Shares and 20

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

Correct Answer:

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