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On January 1, 2017, Nash Company issued 10-year, $1,860,000 face value, 6% bonds, at par. Each $1,000 bond is convertible int

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Answer #1

Basic earning per share = 302000/92000 = 3.28 per share

a) Diluted earning per share = Adjusted net income/Adjusted share = (302000+66960)/(92000+27900) =3.08 per share

b) Diluted earning per share = 302000/(92000+46000) = 2.19 per share

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