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

Austin Products reported $330,000 net income for the year with 100,000 common shares outstanding all year. Austin issued 20,000 shares of $100, 8% convertible preferred shares on March 1. Each preferred share is convertible into 10 shares of common stock. Determine the numerator for both basic and diluted EPS.

A) basic EPS $330,000 - [(20,000 × $100 × 8%) (2/12) ]; diluted EPS $330,000
B) basic EPS $330,000 - [(20,000 × $100 × 8%) (2/12) ]; diluted EPS $330,000 - (20,000 × $100 × 8%)
C) basic EPS $330,000; diluted EPS $330,000
D) basic EPS $330,000 - [(20,000 × $100 × 8%) (10/12) ]; diluted EPS $330,000