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On January 2, 2014, Wondrous Co. issued at par $50,000 of 4 percent bonds convertible, in total, into 5,000 shares of Wondrous's common stock. No
On January 2, 2014, Wondrous Co. issued at par $50,000 of 4 percent bonds convertible, in total, into 5,000 shares of Wondrous's common stock. No bonds were converted during 2014. Throughout 2014 Wondrous had 5,000 shares of common stock outstanding. Wondrous' 2014 net income was $5,000. Wondrous' income tax rate is 40 percent. No potentially dilutive securities other than the convertible bonds were outstanding during 2014. Wondrous' diluted earnings per share for 2014 would be ___
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