Question
The following information has been provided by the Smith corp for the year ending Dec, 31,2015 -The numerator used in the calculation of basic earnings
The following information has been provided by the Smith corp for the year ending Dec, 31,2015 -The numerator used in the calculation of basic earnings per share was $ 797,000. - Cash dividends were paid to the common shareholders - 8% convertible bond with a par value of $ 1,000,000 were issued on July 1, 2015. - The corporation's marginal income tax rate is 40%. - 6% convertible preferred stock with a par value of $ 800,000 were outstanding during the entire year.
Assuming that both the bond and preferred stock are dilutive, what is the numerator that should be used in the calclulation of diluted earing per share? A - $ 893,000 B - $ 869,000 C - $ 773,000 D- $ 821,000
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