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Gray Corporation reported $700,000 in interest expense for the current year for bonds that were issued in prior years. Gray's tax rate is 30%. By

Gray Corporation reported $700,000 in interest expense for the current year for bonds that were issued in prior years. Gray's tax rate is 30%.

By what amount is the numerator of diluted EPS positively adjusted?

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Part 1

A.$490,000

B.$700,000

C.$0

D.$ 210,000

Charlotte Engineering had net income of $575,000 for the year. It declared $45,000in preferred dividends on December 23. It began the year with 700,000 common shares outstanding. On July 1, Charlotte declared a 10% common stock dividend. Compute the weightedaverage common shares outstanding for the year.

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Part 2

A.700,000

B.840,000

C.770,000

D.630,000

Ace Corporation has 10,000 shares of $100, 7%, convertible preferred shares outstanding for the whole year. Each preferred share is convertible into 2 shares of common stock. What is the incremental income per common share from the preferred stock?

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Part 3

A.$3.50

B.$50.00

C.$7.00

D. $1.00

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