Ahnberg Corporation had 560,000 shares of common stock issued and outstanding at January 1. No common shares were issued during the year, but on January 1, Ahnberg issued 180,000 shares of convertible preferred stock. The preferred shares are convertible into 360,000 shares of common stock. During the year Ahnberg paid $108,000 cash dividends on the preferred stock. Net income was $1,060,000. What were Ahnberg's basic and diluted earnings per share for the year

Basic earnings per share = $1.7

Diluted earnings per share = $1.03

Explanation:

Basic earnings per share = (Net Income - preferred dividends)/Weighted average shares outstanding

Basic earnings per share = (1,060,000-108,000)/560,000

Basic earnings per share = $1.7

Diluted earnings per share = [Net Income - preferred dividend]/(outstanding shares+Diluted Shares)

Diluted earnings per share = (1,060,000-108,000) / (560,000+360,000 )

Diluted earnings per share = $1.03

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.