At December 31, 2018, MedX Corporation had outstanding 200,000 shares of common stock. Also outstanding were 120,000 shares of preferred stock convertible into 64,000 common shares and $1,800,000 of 10% bonds convertible into 27,000 common shares. MedX's net income for the year ended December 31, 2018, is $1,040,000. The income tax rate is 40%. MedX paid dividends of $2 per share on its preferred stock during 2018.
Required:
Compute basic and diluted earnings per share for the year ended December 31, 2018, considering possible antidilutive effects.

Question

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The Answer of At December 31, 2018, MedX Corporation had outstanding 200,000 shares of common stock. Also outstanding were 120,000 shares of preferred stock convertible into 64,000 common shares and $1,800,000 of 10% bonds convertible into 27,000 common shares. MedX's net income for the year ended December 31, 2018, is $1,040,000. The income tax rate is 40%. MedX paid dividends of $2 per share on its preferred stock during 2018.
Required:
Compute basic and diluted earnings per share for the year ended December 31, 2018, considering possible antidilutive effects.

At December 31, 2018, MedX Corporation Had Outstanding 200,000 Shares