Colselo Has 200,000 Common Share Outstanding for the Year and Net

Colselo has 200,000 common share outstanding for the year and net income of $400,000.It has 20,000 stock options and 20,000 shares of $100,6% cumulative preferred stock,both of which were outstanding for the entire year.Compute basic and diluted EPS.

A) basic EPS $2.00; diluted EPS $1.67
B) basic EPS $2.00; diluted EPS $1.27
C) basic EPS $1.40; diluted EPS $1.27
D) basic EPS $1.40; diluted EPS $1.67

Correct Answer:

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