Cottrell Lamps reported a net income of $530,000 for the current year. In addition Cottrell Lamps had 50,000 common shares outstanding throughout the year, an income tax rate of 34%; and has $100,000 in 6% convertible bonds outstanding, that are convertible to 25,000 common shares. Using the if-converted method, how much will net income increase in the diluted EPS calculation compared to the basic EPS?

Answer rating: 100% (QA)

Heres how to calculate the increase in net income for diluted EPS using the ifconverted method 1 Cal... View the full answer