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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Definitions:

Sclera

The white, outer layer of the eyeball, providing protection and maintaining the eye's shape.

Retina

Nervous tunic of the eyeball.

Lacrimal Gland

Tear gland located in the superolateral corner of the orbit.

Mitral Cells

Neurons in the olfactory bulb that receive signals from the sensory neurons and transmit them to other parts of the brain for odor processing.