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    Accounting: Diluted Earnings Per Share

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    I need help with this problem. Strickland Corporation earned a net income of $300,000 in 2008 and had 100,000 shares of common stock outstanding throughout the year. Also outstanding all year was $400,000 of 10% bonds, which are convertible into 16,000 shares of common. Strickland's tax rate is 40 percent. Compute Strickland's 2008 diluted earnings per share.

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    This solution provides answers for problems regarding diluted earnings per share.