Grimm Company Has 2,400,000 Shares of Common Stock Outstanding on December

question 81

Multiple Choice

Grimm Company has 2,400,000 shares of common stock outstanding on December 31, 2014. An additional 150,000 shares of common stock were issued on July 1, 2015, and 300,000 more on October 1, 2015. On April 1, 2015, Grimm issued 6,000, $1,000 face value, 8% convertible bonds. Each bond is convertible into 40 shares of common stock. No bonds were converted into common stock in 2015. What is the number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively, for the year ended December 31, 2015?

• A) 2,550,000 and 2,730,000
• B) 2,550,000 and 2,550,000
• C) 2,550,000 and 2,790,000
• D) 2,850,000 and 3,030,000

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Definitions:

Efferent Arterioles

Small blood vessels that are part of the kidney's microcirculation, carrying blood away from the glomeruli toward the vasa recta.

Afferent Arterioles

Afferent arterioles are small blood vessels that carry blood towards the glomeruli of the kidney, playing a key role in the regulation of blood pressure and filtration rate.

Osmoregulation

The process by which living organisms control the concentration of water and solutes within their bodies to maintain homeostasis.

Freshwater Fish

Fish species that spend most or all of their lives in freshwater environments like rivers and lakes, as opposed to saltwater habitats.