Find basic earnings per share is for neimer ltd

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Question 1: During 2020, Neimer Ltd. had 350,000 common shares, 60,000 non-cumulative convertible preferred shares, and $1,200,000 10% convertible bonds outstanding. The preferred shares are convertible into 80,000 common shares. During 2020, Neimer paid dividends of $1.00 per share to the common shares and $1.50 per share to the preferred shares. Each $1,000 bond is convertible into 50 common shares. The net income for 2020 was $1,000,000 and the income tax rate was 30%. Basic earnings per share for 2020 is

Option A. $3.03.

Option B. $2.04.

Option C. $2.86.

Option D. $2.60.

Reference no: EM132583922

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