On January 1, 2020, a company issued 10-year, $2,000,000 face value, 8% bonds, at par. Each $1,000 bond is convertible into 23 shares of the company’s common stock. The company’s net income in 2020 was $600,000, and its tax rate was 25%. The company had 500,000 shares of common stock outstanding throughout 2020. None of the bonds were converted in 2020. What is the denominator for computing diluted earnings per share for the company for 2020?

Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.