On January 2,2014,Wondrous Co

question 60

Multiple Choice

On January 2,2014,Wondrous Co.issued at par $50,000 of 4 percent bonds convertible,in total,into 5,000 shares of Wondrous's common stock.No bonds were converted during 2014.Throughout 2014 Wondrous had 5,000 shares of common stock outstanding.Wondrous' 2014 net income was $5,000.Wondrous' income tax rate is 40 percent.No potentially dilutive securities other than the convertible bonds were outstanding during 2014.Wondrous' diluted earnings per share for 2014 would be

• A) $0.58.
• B) $0.62.
• C) $0.70.
• D) $1.16.

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