QUESTION 21

1. Dunn, Inc. had 200,000 shares of $20 par common stock and 20,000 shares of $100 par, 6%, cumulative, convertible preferred stock outstanding for the entire current year ended December 31. Each preferred share is convertible into five shares of common stock. Dunn's net income for the year was $840,000. For the current year ended December 31, the diluted earnings per share is

   		$2.40
   		$2.80
   		$3.60
   		$4.20