During 2018, M Co

question 171

Multiple Choice

During 2018, M Co. had the following two classes of stock issued and outstanding for the entire year: • 400,000 shares of common stock, $1 par.
• 2,000 shares of 4% preferred stock, $100 par, convertible share-for-share into common stock.
M's 2018 net income was $1,800,000, and its income tax rate for the year was 30%. In the computation of diluted earnings per share for 2018, the amount to be used in the numerator is:

• A) $1,792,000.
• B) $1,796,000.
• C) $1,800,000.
• D) $1,802,400.

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