At December 31, 2024, DEF Corporation had outstanding 200,000 shares of common stock. Also outstanding were...

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At December 31, 2024, DEF Corporation had outstanding 200,000 shares of common stock. Also outstanding were 80,000 shares of preferred stock convertible into 64,000 common shares and $2,000,000 of 10% bonds convertible into 30,000 common shares. DEF's net income for the year ended December 31, 2024, is $1,140,000. The income tax rate is 25%. DEF paid dividends of $3 per share on its preferred stock during 2024. Required: Compute basic and diluted earnings per share for the year ended December 31, 2024, considering possible antidilutive effects. At December 31, 2024, DEF Corporation had outstanding 200,000 shares of common stock. Also outstanding were 80,000 shares of preferred stock convertible into 64,000 common shares and $2,000,000 of 10% bonds convertible into 30,000 common shares. DEF's net income for the year ended December 31, 2024, is $1,140,000. The income tax rate is 25%. DEF paid dividends of $3 per share on its preferred stock during 2024. Required: Compute basic and diluted earnings per share for the year ended December 31, 2024, considering possible antidilutive effects.

Answer rating: 100% (QA)

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