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On January 2, 2021, Vaughn Manufacturing issued at par $1920000 of 6% convertible bonds. Each $1000 bond is convertible into 10 shares of common
On January 2, 2021, Vaughn Manufacturing issued at par $1920000 of 6% convertible bonds. Each $1000 bond is convertible into 10 shares of common stock. No bonds were converted during 2021. Vaughn had 193000 shares of common stock outstanding during 2021. Vaughn's 2021 net income was $893000 and the income tax rate was 35%. Vaughn's diluted earnings per share for 2021 would be (rounded to the nearest penny): $4.56. $4.70. $5.00. $4.63. C C M
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