ohnson had a net income of $530,000; 50,000 shares of common stock outstanding; an income tax rate of 34%; and $100,000 in 6% convertible bonds outstanding, convertible to 25,000 shares of common stock. How much would net income increase in the diluted EPS compared to the basic EPS using the if-converted method?

ohnson had a net income of $530,000; 50,000 shares of common stock outstanding; an income tax rate of 34%; and $100,000 in 6% convertible bonds outstanding, convertible to 25,000 shares of common stock. How much would net income increase in the diluted EPS compared to the basic EPS using the if-converted method?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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