Question 4 (5 points) 4. On June 30, 2019, bonds were issued at par with a face value of $2,000,000 and a 7% stated interest rate. Each bond has a $1,000 face value and is convertible into 30 shares of common stock. What is the impact of these bonds on the numerator and the denominator in your December 31, 2019 diluted earnings per share calculation if the "if converted" method is used? A. $70,000 in the numerator and 60,000 in the denominator B. $42,000 in the numerator and 60,000 in the denominator C. $140,000 in the numerator and 60,000 in the denominator D. $84,000 in the numerator and 60,000 in the denominator E. $42,000 in the numerator and 30,000 in the denominator Question 5 (5 points) 5. Your company also has 40,000 shares of 6% convertible, cumulative preferred stock ($100 par value per share) which was outstanding for the full year. Each preferred share can be converted into 3 shares of common stock. No preferred dividend has been declared for the current and preceding 2 years. Using the "if converted" method, calculate the impact on the numerator and denominator in your December 31, 2019 diluted earnings per share calculation. A. $720,000 numerator and 360,000 denominator B. $480,000 numerator 240,000 denominator C. $240,000 numerator 120,000 D. There is no impact since this convertible preferred stock is anti dilutive