On January 1, 2020, a company issued 10 year, $800,000 facevalue, 7 bonds, at par Each $1,000 bond is convertible into 20shares of the company rsquo s common stock The company rsquo s net income in2020 was $500,000, and its tax rate was 22 The company had100,000 shares of common stock outstanding t...

On January 1, 2020, a company issued 10-year, $800,000 facevalue, 7% bonds, at par. Each $1,000 bond

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On January 1, 2020, a company issued 10-year, $800,000 facevalue, 7% bonds, at par. Each $1,000 bond is convertible into 20shares of the company’s common stock. The company’s net income in2020 was $500,000, and its tax rate was 22%. The company had100,000 shares of common stock outstanding throughout 2020. None ofthe bonds were converted in 2020.

What is the numerator for computingdiluted earnings per share for the company for 2020?