For the current year,Voque Company reported basic earnings per share of $8 and diluted earnings per share of $3.The difference between these figures is attributable to outstanding shares of convertible preferred stock.If all this preferred stock had actually been converted into common stock at the beginning of the current year,Voque Company would have reported only one earnings per share amount,which would have been:

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Diluted earnings per share (EPS) takes into account the conversion of convertible securities into common stock, which increases the number of shares outstanding and typically reduces EPS. Since the diluted EPS is $3, this would be the EPS if all convertible preferred stock were converted into common stock.

For the Current Year,Voque Company Reported Basic Earnings Per Share