Information from the financial statements of ames fabricators, inc., included the following: december 31 2018 2017 common shares 100,000 100,000 convertible preferred shares (convertible into 32,000 shares of common) 12,000 12,000 10% convertible bonds (convertible into 30,000 shares of common) $ 1,000,000 $ 1,000,000 ames’s net income for the year ended december 31, 2018, is $500,000. the income tax rate is 40%. ames paid dividends of $5 per share on its preferred stock during 2018. required: compute basic and diluted earnings per share for the year ended december 31, 2018.

scenario: hawaii and south carolina are trading partners. hawaii has an absolute advantage in the production of both coffee and tea. the opportunity cost of producing 1 pound of tea in hawaii is 2 pounds of coffee, and the opportunity cost of producing 1 pound of tea in south carolina is 1/3 pound of coffee. which of the following statements is true? a. south carolina should specialize in the production of both tea and coffee. b. hawaii should specialize in the production of tea, whereas south carolina should specialize in the production of coffee. c. hawaii should specialize in the production of coffee, whereas south carolina should specialize in the production of tea. d. hawaii should specialize in the production of both tea and coffee.