An excerpt from the statement of financial position of Crane Limited follows: CRANE LIMITED Selected Statement of Financial Position Information At December 31, 2023 Long-term debt Notes payable, 10% 4% convertible bonds payable 6% convertible bonds payable Total long-term debt Shareholders' equity $0.70 cumulative, no par value, convertible preferred shares $5,050,000 2,050,000 3,300,000 $10,400,000 (unlimited number of shares authorized, 670,000 shares issued and outstanding) $3,350,000 Common shares, no par value (8,000,000 shares authorized, 3,100,000 shares issued and outstanding) 29,450,000 Contributed surplus 260,000 Retained earnings Total shareholders' equity 7.150,000 $40,210,000 Notes and Assumptions December 31, 2023 1. 2. 3. Options were granted/written in 2022 that give the holder the right to purchase 100.000 common shares at $9 per share. The average market price of the company's common shares during 2023 was $16 per share. The options expire in 2031 and no options were exercised in 2023. The 4% bonds were issued in 2022 at face value. The 6% bonds were issued on June 1, 2023, at face value. Each bond has a face value of $1,000 and is convertible into 100 c O common shares. The convertible preferred shares were issued at the beginning of 2023. Each preferred share is convertible into one common share. 4. The average income tax rate is 25% 5. The common shares were outstanding during the entire year. 6. Preferred dividends were not declared in 2023. 7. Net income was $2,701,000 in 2023. 8. No bonds or preferred shares were converted during 2023. Calculate the income effect of the dividends on preferred shares. Dividends on preferred shares $ eTextbook and Media Calculate basic earnings per share for 2023. (Round answer to 2 decimal places, eg 15.25) Basic EPS $ eTextbook and Media Determine an incremental per share effect for $0.70 preferred shares. (Round answer to 2 decimal places, eg. 15.25) Potentially dilutive security Incremental Numerator Effect $0.70 Preferred shares eTextbook and Media Incremental Denominator Effect EPS Calculate the proceeds from assumed exercise of 100,000 options. (Round answer to 0 decimal places, eg. 1.525) Proceeds from exercise of options Calculate the incremental shares oustanding upon the exercise of options. (Round answer to 0 decimal places, es. 1,525) The incremental shares oustanding upon the exercise of options eTextbook and Media Calculate the after-tax interest paid on the 4% honds Calculate the after-tax interest paid on the 4% bonds. After-tax interest on 4% bonds converted $ eTextbook and Media Determine an incremental per share effect for 4% bonds. (Round earnings per share to 2 decimal places, eg. 15.25.) Potentially dilutive security Incremental Numerator Effect Incremental Denominator Effect 4% Bonds $ eTextbook and Media Calculate the after-tax interest paid on the 6% bonds. After-tax interest on 6% bonds converted $ eTextbook and Media. EPS Determine an incremental per share effect for 6% bonds. (Round earnings per share to 2 decimal places, eg. 15.25) Incremental Potentially dilutive security Numerator Effect 6% Bonds eTextbook and Media Incremental Denominator Effect EPS Rank the potentially dilutive securities from most dilutive to least dilutive. 4% Bonds 6% Bonds $0.70 Preferred shares Options eTextbook and Media Calculate diluted earnings per share for 2023. (Round earnings per share to 2 decimal places, eg. 15.25) Basic Sub Total Sub Total Sub Total Diluted EPS $ Numerator Denominator EPS