During its fiscal year, Deerborn Distributing had net income of $100,000 (no extraordinary items) and 50,000 shares of common stock and 10,000 shares of preferred stock outstanding. Deerborn declared and paid dividends of $.50 per share to common and $6.00 per share to preferred. The preferred stock is convertible into common stock on a share-for-share basis. For the year, Deerborn Distributing
should report diluted earnings (loss) per share of
a. $(0.80).
b. $1.00.
c. $1.67.
d. $2.67.
C
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Indicate whether the statement is true or false
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