At December 31,2013,Grandin Corporation Had 500 Shares of Common Stock

question 61

Multiple Choice

At December 31,2013,Grandin Corporation had 500 shares of common stock outstanding.On October 1,2014,an additional 200 shares of common stock were issued.In addition,Grandin Corp.had $40,000 of 8 percent convertible bonds outstanding at December 31,2013,which are convertible into 225 shares of common stock.No bonds were converted into common stock in 2014.Net income for the year ending December 31,2014,was $14,000.Assuming the income tax rate was 50 percent,the diluted earnings per share for the year ended December 31,2014,should be

• A) $15.67
• B) $20.13
• C) $25.45
• D) $28.36

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Definitions:

Irrationality

The act of making decisions or acting in ways that are not logical or reasonable based on available evidence or common sense.

Distorted Perceptions

Altered or skewed interpretation of reality, typically due to mental health issues or substance use.

Dysfunctional

Pertaining to the impairment or abnormal functioning of a bodily system or organ.

Ongoing Patterns

Continuous or regularly recurring behaviors, trends, or activities.