Pharoah Corporation had net income of $54,500 for the year ended December 31, 2020, and a weighted average number of common shares outstanding of 13,400. The following information is provided regarding the capital structure: 8% convertible debt, 230 bonds each convertible into 43 common shares. The bonds were outstanding for the entire year. The income tax rate is 35%. The bonds were issued at par ($1,000 per bond). No bonds were converted during the 1. year. 3% convertible, cumulative $110 preferred shares, 1,100 shares issued and outstanding. Each preferred share is convertible into 2 common shares. The preferred shares were issued at par and were outstanding the entire year. No shares were converted during the year. 2. Your answer is incorrect. Calculate the income effect of the dividends on preferred shares. Dividends on preferred shares $ eTextbook and Media X Your answer is incorrect. Calculate the basic earnings per share for 2020. (Round answer to 2 decimal places, e.g. 15.25.) Basic earnings per share 2$ Calculate the after-tax interest paid on the 8% bonds. After-tax interest on bonds converted $ Determine an incremental per share effect for 8% bonds. (Round earnings per share to 2 decimal places, e.g. 15.25.) Potentially dilutive security Incremental Incremental Numerator Effect Denominator Effect EPS 8% Bonds $ $ Determine an incremental per share effect for 3% preferred shares. (Round earnings per share to 2 decimal places, e.g. 15.25.) Potentially dilutive security Incremental Incremental Numerator Effect Denominator Effect EPS 3% Preferred shares %24 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. (Round earnings per share to 2 decimal places, e.g. 15.25.) Numerator Denominator EPS Basic $ Sub Total $ $ Diluted EPS %24 %24