Question: On January 2 . 2 0 2 4 . L Co . issued at face value $ 2 0 , 0 0 0 of 4

On January 2.2024. L Co. issued at face value $20,000 of 4% bonds convertible in total into 1,000 shares of L's common stock. No bonds were converted during 2024.
Throughout 2024, L had 1,000 shares of common stock outstanding. L's 2024 net income was $2,000. L's income tax rate is 25%.
No potential common shares other than the convertible bonds were outstanding during 2024.
L's diluted earnings per share for 2024 would be:
$1.40.
$1.30.
$2.00.
$1.00.
On January 2 . 2 0 2 4 . L Co . issued at face

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