Nolte Co Has 4,500,000 Shares of Common Stock Outstanding on December

question 58

Multiple Choice

Nolte Co. has 4,500,000 shares of common stock outstanding on December 31, 2014. An additional 200,000 shares are issued on April 1, 2015, and 480,000 more on September 1. On October 1, Nolte issued $6,000,000 of 9% convertible bonds. Each $1,000 bond is convertible into 40 shares of common stock. No bonds have been converted. The number of shares to be used in computing basic earnings per share and diluted earnings per share on December 31, 2015 is

• A) 4,810,000 and 4,810,000.
• B) 4,810,000 and 4,870,000.
• C) 4,810,000 and 5,050,000.
• D) 5,580,000 and 5,020,000.

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Definitions:

Lice

Parasitic insects that infest the hair and skin of humans and animals, causing itching and discomfort.

Direct Transfer

A method of electronically moving funds from one account to another without the need for paper checks or cash handling.

Indirect Contact

The spread of disease through touching surfaces or objects contaminated by an infected person, instead of direct physical contact.

Pinworms

Small, parasitic worms that infect the intestines, especially in children, causing itching and discomfort around the anus.