During 2016,M Co

question 136

Multiple Choice

During 2016,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 2016 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 2016,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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