On January 2, 2021, Crane Company issued at par $1920000 of 5% convertible bonds. Each $1000 bond is convertible into 10 shares of common stock. No bonds were converted during 2021. Crane had 206000 shares of common stock outstanding during 2021. Crane's 2021 net income was $904000 and the income tax rate was 25%. Crane's diluted earnings per share for 2021 would be (rounded to the nearest penny): O $4.47. O $4.77. O $4.39. O $4.33.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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On January 2, 2021, Crane Company issued at par $1920000 of 5% convertible bonds. Each $1000 bond is convertible into 10
shares of common stock. No bonds were converted during 2021. Crane had 206000 shares of common stock outstanding during
2021. Crane's 2021 net income was $904000 and the income tax rate was 25%. Crane's diluted earnings per share for 2021 would
be (rounded to the nearest penny):
O $4.47.
O $4.77.
O $4.39.
O $4.33.
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Transcribed Image Text:Current Attempt in Progress On January 2, 2021, Crane Company issued at par $1920000 of 5% convertible bonds. Each $1000 bond is convertible into 10 shares of common stock. No bonds were converted during 2021. Crane had 206000 shares of common stock outstanding during 2021. Crane's 2021 net income was $904000 and the income tax rate was 25%. Crane's diluted earnings per share for 2021 would be (rounded to the nearest penny): O $4.47. O $4.77. O $4.39. O $4.33. Save for Later Attempts: 0 of 1 used Submit Answer MacBook Air
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