6.Net income for fiscal year 2017 was $1,500,000, and the average income tax rate is 40%.

For the fiscal year ended June 30, 2017, calculate the following for Marin Pharmaceutical Industries. (Round answers to 2 decimal places, e.g. $2.45.) (a) Basic earnings per share.

(b) Diluted earnings per share.

MARIN PHARMACEUTICAL INDUSTRIES SELECTED BALANCE SHEET JUNE 30, 2017 Long-term debt Notes payable, 9% $1,000,000 8% convertible bonds payable 4,910,000 9% bonds payable 6,080,000 $11.990.000 Total long-term debt Shareholders' equity Preferred stock, 7% cumulative, $50 par value, 96,000 shares authorized, 24,000 shares issued and outstanding $1,200,000 Common stock, $1 par, 10,000,000 shares authorized, 1,000,000 shares issued and outstanding 1,000,000 capital Additional paid- 4,010,000 5,880,000 Retained earnings $12,090,000 Total shareholders' equity The following transactions have also occurred tMarin. 1. Options were granted on July 1, 2016, fiscal year 2017 wa purchase 220,000 shares at $15 per share. Although no options were exercised during fiscal year 2017, the average price per common share during $20 per share. was issued at face value. The 8% convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal 2. vear 2016 3. The preferred stock was issued in 2016 4. There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2017 5. The 1.000.000 shares of common stock were outstandina for the entire 2017 fiscal vear. i... |! MARIN PHARMACEUTICAL INDUSTRIES SELECTED BALANCE SHEET JUNE 30, 2017 Long-term debt Notes payable, 9% $1,000,000 8% convertible bonds payable 4,910,000 9% bonds payable 6,080,000 $11.990.000 Total long-term debt Shareholders' equity Preferred stock, 7% cumulative, $50 par value, 96,000 shares authorized, 24,000 shares issued and outstanding $1,200,000 Common stock, $1 par, 10,000,000 shares authorized, 1,000,000 shares issued and outstanding 1,000,000 capital Additional paid- 4,010,000 5,880,000 Retained earnings $12,090,000 Total shareholders' equity The following transactions have also occurred tMarin. 1. Options were granted on July 1, 2016, fiscal year 2017 wa purchase 220,000 shares at $15 per share. Although no options were exercised during fiscal year 2017, the average price per common share during $20 per share. was issued at face value. The 8% convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal 2. vear 2016 3. The preferred stock was issued in 2016 4. There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2017 5. The 1.000.000 shares of common stock were outstandina for the entire 2017 fiscal vear. i... |