Use the information below to answer #38-39: Bug Guy’s capita…
Use the information below to answer #38-39: Bug Guy’s capital structure was as follows: December 31, 2018 Number of outstanding common shares 10,000 Number of convertible preferred shares 1,000 10% convertible bonds $120,000 During 2018, Bug Guy paid dividends of $3.00 per share on its preferred stock. The preferred shares are convertible into 2,000 shares of common stock, and the 10% bonds are convertible into 3,000 shares of common stock. Assume the income tax rate is 30%. If net income for 2018 is $42,000, Bug Guy should report diluted earnings per share as
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