9) ABC Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,500,000 of 5% convertible bonds outstanding during 2021. The preferred stock is convertible into 40,000 shares of common stock. During 2021, ABC paid dividends! of $.90 per share on the common stock and $3 per share on the preferred stock. Each $1,000 bond is convertible into 30 shares of common stock. The net income for 2021 was $600,000 and the income tax rate was 30%. Diluted earnings per share for 2021 is (rounded to the nearest penny) A) $2.08. B) $2.29. C) $2.12. D) $2.50. 10) ABC Company had 1,500,000 shares of common stock issued and outstanding at December 31, 2020. On July 1, 2021 an additional 1,250,000 shares were issued for cash. ABC also had stock options outstanding at the beginning and end of 2021 which allow the holders to purchase 375,000 shares of common stock at $20 per share. The average market price of ABC's common stock was $25 during 2021. What is the number of shares that should be used in computing diluted earnings per share for the year ended December 31, 20212 A) 2,218,750 B) 2,425,000 C) 2,825,000 D) 2,200,000 11) On January 2, 2021, ABC Co. issued at par $10,000 of 6% bonds convertible in total into 1,000 shares of ABC's common stock. No bonds were converted during 2021. Throughout 2021, ABC had 1,000 shares of common stock outstanding. ABC's 2021 net income was $4,500, and its income tax rate is 30%. No potentially dilutive securities other than the convertible bonds were outstanding during 2021. ABC's diluted earnings per share for 2021 would be (rounded to the nearest penny) A) $4.92. B) $2.25. C) $2.55. D) $2.46. 12) At December 31, 2020, ABC Co. had 1,200,000 shares of common stock outstanding. In addition, ABC had 450,000 shares of preferred stock which were convertible into 750,000 shares of common stock. During 2021, ABC paid $1,200,000 cash dividends on the common stock and $800,000 cash dividends on the preferred stock. Net income for 2021 was $6,800,000 and the income tax rate was 40%. The diluted earnings per share for 2021 is (rounded to the nearest penny) AX240 R140 DA 66 min