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Baker Instruments reported $7,000.000 in net income for the current year. The company had $300,000 of 10% cumulative, non - convertible preferred stock outstanding all
Baker Instruments reported $7,000.000 in net income for the current year. The company had $300,000 of 10% cumulative, non - convertible preferred stock outstanding all year, and issued, $5,000.000 of 6% convertible bonds issued on June 1. Determine the numerator tor both basic and diluted EPS when the tax rate is 40% A. basic EPS(($7,000,000 - $30,000) times (7/12)); diluted EPS ($30,000 (7/12) + ($300,000 times 7/12)(1 - .40)) B. basic EPS(($7,000,000 - $30,000) times (5/12)); diluted EPS ($30,000 (5/12) + ($300,000 times 5/12)(1 - .40)) C. basic EPS(($7,000,000 - $30,000); diluted EPS ($30,000 + ($300,000 times 7/12)(1 - .40)) D. basic EPS(($7,000,000 - $30,000); diluted EPS ($30,000 + ($300,000 times 5/12)(1 - .40))
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