Refer to the information about Hutchins Company in MC20-I .
Diluted earnings per share for the current year was (rounded to the nearest penny):

a. $5.00

b . $3.35

c. $3.53

d. $3.06

MC20-I 

Hutchins Company had 200,000 shares of common stock. 50,000 shares of convertible preferred stock, and $2.000,000 of I 0% convertible bonds outstanding during the entire year.T he preferred stock was convertible into 40,000 shares of common stock. During the current year. Hutchins paid dividends of $1.00 per share on the common stock and $2.00 per share on the preferred stock. Each $1.000 bond was convertible into 50 shares of common stock. The net income for the year was $1,000.000, and the income tax rate was 30%.
Basic earnings per share for the current year was (rounded LO the nearest penny):
a . $5.00 b . $4.50 c. $4.30 d. $4.55