Testbank Multiple Choice Question 87

A convertible bond issue should be included in the diluted earnings per share computation as if the bonds had been converted into common stock, if the effect of its inclusion is:

Dilutive

Antidilutive

Yes

Yes

Yes

No

No

Yes

No

No

Testbank Multiple Choice Question 96

Crane Company had 603000 shares of common stock outstanding on January 1, issued 904000 shares on July 1, and had income applicable to common stock of $2931000 for the year ending December 31, 2021. Earnings per share of common stock for 2021 would be

$3.25.

$4.86.

$2.30.

$2.78.