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Alciatore Company reported a net income of $ 1 5 0 , 0 0 0 in 2 0 2 1 . The weighted - average

Alciatore Company reported a net income of $150,000 in 2021. The weighted-average number of common
shares outstanding for 2021 was 40,000. The average stock price for 2021 was $33. Assume an income tax rate
of 25%.
Required:
For each of the following independent situations, indicate whether the effect of the security is antidilutive for
diluted EPS.
10,000 shares of 7.7% of $100 par convertible, cumulative preferred stock. Each share may be converted into
two common shares.
6.4% convertible 10-year, $500,000 of bonds, issued at face value. The bonds are convertible to 5,000 shares
of common stock.
Stock options exercisable at $30 per share after January 1,2023.
Warrants for 1,000 common shares with an exercise price of $35 per share.
A contingent agreement to issue 5,000 shares of stock to the company president if net income is at least
$125,000 in 2022.

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