The following convertible securities will have a dilutive impact on earnings per share:    (1)10% convertible preferred stock with dividends of $7,000 declared during the year and shares convertible into 2,500 common shares(2)6% convertible bonds with interest expense (net of taxes) of $8,000 and convertible into 3,500 common shares(3)8% convertible bonds with interest expense (net of taxes) of $5,000 and convertible into 1,600 common shares What is the appropriate ranking of items 1, 2, and 3 above to indicate their impact on diluted earnings per share calculations from most dilutive to least dilutive?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 27E: Percy Company has 15,000 shares of common stock outstanding during all of 2019. It also has 2...
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The following convertible securities will have a dilutive impact on earnings per share: 

 

(1)10% convertible preferred stock with dividends of $7,000 declared during the year and shares convertible into 2,500 common shares(2)6% convertible bonds with interest expense (net of taxes) of $8,000 and convertible into 3,500 common shares(3)8% convertible bonds with interest expense (net of taxes) of $5,000 and convertible into 1,600 common shares

What is the appropriate ranking of items 1, 2, and 3 above to indicate their impact on diluted earnings per share calculations from most dilutive to least dilutive?

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