During Its Fiscal Year,Deerborn Distributing Had Net Income of $100,000

question 74

Multiple Choice

During its fiscal year,Deerborn Distributing had net income of $100,000 (no extraordinary items) and 50,000 shares of common stock and 10,000 shares of preferred stock outstanding.Deerborn declared and paid dividends of $.50 per share to common and $6.00 per share to preferred.The preferred stock is convertible into common stock on a share-for-share basis.For the year,Deerborn Distributing should report diluted earnings (loss) per share of

• A) $(0.80).
• B) $1.00.
• C) $1.67.
• D) $2.67.

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