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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Definitions:

Artificialism

In the context of developmental psychology, it is the belief common in children that the environment and its features are created by human beings.

Symbolic

Pertains to the use of symbols, signs, or objects to represent ideas or concepts, a fundamental aspect of human communication and thought.

Dreams

A series of thoughts, images, and sensations occurring in a person's mind during sleep.

Egocentrism

In developmental psychology, a phase where a child is unable to differentiate between their own perspective and that of others, often observed in early childhood.