1: On January 1, 2020, Booker Corp. issued $5 million of ten year bonds at 97.5 (Booker amortizes any premium/discount on a straight line basis). Each $1,000 bond is convertible into 50 shares of Booker's $4.00 par value common stock.

On January 1, 2022, holders of 40% of the bonds exercised the privilege, and converted their bonds into Booker common stock. The journal entry to record the conversion will include a credit to "Paid in Capital in Excess of Par - Common" of ?

2:

On January 1, Kennard Corp. had 4 million shares of common stock and 290,000 shares of preferred stock outstanding. On May 1, Kennard repurchased 400,000 shares of common stock for cash. On October 1, Kennard issued a 3-for-1 stock split on its common stock.

During the year, Kennard reported $38 million of net income and in December paid dividends of $0.50 per common share and $4.00 per preferred share.

What is Kennard's basic earnings per share?