20. C

21.A

unsure how to get to that conclusion

Use the following information to answer questions 20 and 21. During 2016, Angel Corporation had 900,000 shares of common stock and 50,000 shares of preferred stock outstanding. The preferred stock does not have cumulative or convertible features. Angel declared and paid cash dividends of $300,000 and $150,000 to common and preferred shareholders, respectively, during 2016. On January 1,2015, Angel issued $2,000,000 of convertible 5% bonds at face value. Each $1,000 bond is convertible into five common shares. Angel's net income for the year ended December 31,2016 , was $6 million. The income tax rate is 20%. 20. What is Angel's basic earnings per share for 2016, rounded to the nearest cent? a. $5.29. b. \$5.57. c. $6.50. d. $5.50. 21. What is Angel's diluted earnings per share for 2016 , rounded to the nearest cent? a. $6.50. b. $6.25. c. $6,22. d. $6.52