The Vogel Corp. reported net income for Yr. 6 of $355,000. Vogel began the yr. with 200,000 shares of $5 par value common shares outstanding and 5,000 shares $100 par value 8% preferred shares outstanding. On July 1, Vogel sold (issued) 20,000 shares of common stock for $12 per share. Vogel paid dividends to both the common oand preferred shareholders in December.

What is the basic earnings per share for Yr. 6?

A) 1.43 per share B)1.50 per share C) 1.58 per share D) 1.61 per share

If each share of preferred stock is convertible into 8 shares of common stock, what is the diluted earnings per share for Yr. 6?

A) 1.26 per share B)1.42 per share C) 1.58 per share D) 1.61 per share