At December 31, 2013, BCD Had 700 Common Shares Outstanding

question 127

Multiple Choice

At December 31, 2013, BCD had 700 common shares outstanding.On September 1, 2014, an additional 300 common shares were issued.In addition, BCD had $20,000 of 8 percent convertible bonds outstanding December 31, 2013, which are convertible into 400 common shares.No bonds were converted into common shares in 2014.Net income for the year ended December 31, 2014, was $6,000.Assuming the income tax rate was 50 percent, what should be the diluted earnings per share for the year ended December 31, 2014?

• A)$4.33
• B)$5.67
• C)$5.00
• D)$7.50

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Money owned by an individual that is not tied to any business, investment, or other financial obligations, typically used for personal expenses or savings.