On December 31,2013,Freulein Company Had 8,000 Shares of Common Stock

question 58

Multiple Choice

On December 31,2013,Freulein Company had 8,000 shares of common stock issued and outstanding.On April 1,2014,an additional 1,500 shares of common stock were issued and on July 1,500 more shares were issued.On October 1,2014,Freulein issued 10,$1,000 maturity value,8% convertible bonds.Each bond is convertible into 40 shares of common stock.No bonds were converted into common stock in 2014.Assuming there are no antidilutive securities,what is the number of shares Freulein should use to compute diluted earnings per share for the year ended December 31,2014?

• A) 9,325
• B) 9,475
• C) 9,525
• D) 9,775

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