1.OrioleCorporation had net income of $54,400for the year ended December 31, 2020, and a weighted average number of common shares outstanding of15,100. The following information is provided regarding the capital structure:

1.6% convertible debt,210bonds each convertible into44common shares. The bonds were outstanding for the entire year. The income tax rate is40%. The bonds were issued at par ($1,000per bond). No bonds were converted during the year. 2.4% convertible, cumulative $100preferred shares,1,000shares issued and outstanding. Each preferred share is convertible into4common shares. The preferred shares were issued at par and were outstanding the entire year. No shares were converted during the year.

a. Calculate the income effect of the dividends on preferred shares.

b. Calculate the basic earnings per share for 2020.

c. Calculate the after-tax interest paid on the6% bonds.

d. Determine an incremental per share effect for6% bonds.

Potentially dilutive security Incremental Numerator Effect Incremental Denominator Effect EPS

6% Bonds $ $

e. Determine an incremental per share effect for4% preferred shares

f. Calculate the diluted earnings per share for 2020, using the if-converted method. For simplicity, ignore the requirement to record the debt and equity components of the bonds separately.

NUMERATOR DENOMINATOR EPS

Diluted EPS .......

2.SandhillCorporation had 2020 net income of $1,105,000. During 2020,Sandhillhas not declared or paid any dividend on107,000non-cumulative preferred shares.Sandhillalso had170,000common shares outstanding during the year.

CalculateSandhill's 2020 earnings per share.