The Following Information Has Been Provided to You by the Rae

question 6

Multiple Choice

The following information has been provided to you by the Rae Corporation for the year ending December 31,2015:
• Net income was $979,000.
• Cash dividends totaling $120,000 were paid to the common shareholders.
• 6% convertible bonds with a par value of $2,000,000 were issued on February 1,2015.
• The corporation's marginal income tax rate is 40%.
• 6% convertible preferred stock with a par value of $800,000 was outstanding during the entire year.
Assuming that both the bonds and preferred stock are dilutive,what is the numerator that should be used in the calculation of basic earnings per share and diluted earnings per share?

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Unmasked Input

Unmasked input refers to input data in digital systems that is processed without modification or filtering by a masking operation, meaning all bits in the input are taken into account in the processing.

PL1 Output

In the context of programmable logic controllers (PLCs), PL1 Output might refer to a specific output channel or signal designated as "PL1," used for controlling external devices based on programmed logic.

Data Block

A structured set of data stored in databases or memory, often containing related information for a specific purpose.