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90. On January 2, 2014, CBA issued at par $10,000 of 8 percent bonds convertible into 2,000 CBA's common shares. No bonds were converted during
90. On January 2, 2014, CBA issued at par $10,000 of 8 percent bonds convertible into 2,000 CBA's common shares. No bonds were converted during 2014. Throughout 2014, CBA had 2,000 common shares outstanding. CBA's net income after tax was $1,000. CBA's income tax rate is 50 percent. No potentially dilutive securities other than the convertible bonds were outstanding during 2014. CBA's basic EPS and diluted EPS for 2014 would be: A Basic EPS $0.30; diluted EPS $0.45. B. Basic EPS $0.50; diluted EPS $0.35. C. Basic EPS $0.70; diluted EPS $0.25. D. Basic EPS $0.90; diluted EPS $0.15
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