At December 31,2016,MedX Corporation Had Outstanding 200,000 Shares of Common

Essay

At December 31,2016,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 31,2016,is $1,040,000.The income tax rate is 40%.MedX paid dividends of $2 per share on its preferred stock during 2016.
Required:
Compute basic and diluted earnings per share for the year ended December 31,2016,considering possible antidilutive effects.