What the diluted earnings per share

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Question - Throughout 1998, J Co. had 10,000 ordinary shares outstanding. There was no potential dilution of earnings per share except as follows:

In 20x7, J Co. agreed to issue 2,000 additional shares of its stock to the former stockholders of an acquired company if the acquired company's earnings for any of the five years 20x8 through 2x12 exceeded 5,000.

Results of operations for 20x8 were:

Profit of J Co. 10,000

Profit of acquired company 4,000

Consolidated profit 14,000

Required - What the Diluted earnings per share for 1998 on a consolidated basis?

Reference no: EM132962598

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