During 2013, M Co

question 1

Multiple Choice

During 2013, 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 2013 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 2013, 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:

Financial Contributions

The act of providing monetary resources to support a project, individual, organization, or cause.

Canada Pension Plan

A governmental social insurance program in Canada that provides retirement, disability benefits, and survivor benefits.

Workers' Compensation Insurance

Insurance that businesses carry to cover medical costs and lost wages for employees who get injured or sick on the job.

Individual Liability

The legal responsibility of a person to bear the consequences of their own actions or negligence, distinct from group or organizational liability.