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B. Throughout 2018, the Evergreen Corporation had outstanding 100,000 shares of common stock. During 2018, net income was $800,000. The effective income tax rate is

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B. Throughout 2018, the Evergreen Corporation had outstanding 100,000 shares of common stock. During 2018, net income was $800,000. The effective income tax rate is 30%. The following potentially dilutive items were outstanding at the end of 2018. 1. 9% convertible bonds ($1,000,000) issued at 100 on 9/1/18. Each S 1,000 bond is convertible 2. Options to purchase 20,000 shares at $100 per share were issued on 1/1/17. The average into 15 shares of common stock. No bonds have been converted as of 12/31/18. market price during the year was $80, and the 12/31/18 market price was $85. REQUIRED: Compute the basic and diluted earnings per share for the year ended 2018

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