Austin Products reported $330,000 net income for the year with 100,000 common shares outstanding all year. Austin also had 24,000 shares of $100, 8% convertible preferred shares outstanding all year. Each preferred share is convertible into 10 shares of common stock. Determine the numerator for both basic and diluted EPS.

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The Answer of Austin Products reported $330,000 net income for the year with 100,000 common shares outstanding all year. Austin also had 24,000 shares of $100, 8% convertible preferred shares outstanding all year. Each preferred share is convertible into 10 shares of common stock. Determine the numerator for both basic and diluted EPS.

Austin Products Reported $330,000 Net Income for the Year with 100,000