The balance sheet at the beginning of the current year for GHI Inc.reflected the following: No transactions affecting the denominator of EPS occurred during the year.Assume the preferred shares are dilutive.The number of potential common shares to be included in the denominator of fully diluted EPS is:

Question

Quizplus · Accepted Answer

The number of potential common shares to be included in the denominator of fully diluted EPS is 15, as the preferred shares are considered dilutive and need to be converted into common shares for the calculation.

The Balance Sheet at the Beginning of the Current Year