An excerpt from the statement of financial position of Ivanhoe Limited follows: IVANHOE 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 $0.69 cumulative, no par value, convertible preferred shares $5,850,000 2,150,000 3,060,000 $11,060,000 (unlimited number of shares authorized, 650,000 shares issued and outstanding) $3,250,000 Common shares, no par value (8,000,000 shares authorized, 3,000,000 shares issued and outstanding) 28,500,000 Contributed surplus 280,000 7,150,000 Retained earnings Total shareholders' equity $39,180,000 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 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 $2,578,500 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 $ Calculate basic earnings per share for 2023. (Round answer to 2 decimal places, e.g. 15.25.) Basic EPS eTextbook and Media Determine an incremental per share effect for $0.69 preferred shares. (Round answer to 2 decimal places, e.g. 15.25.) Potentially dilutive security $0.69 Preferred shares eTextbook and Media Incremental Numerator Effect SA $ Incremental Denominator Effect SA EPS Calculate the proceeds from assumed exercise of 100,000 options. (Round answer to O decimal places, e.g. 1,525.) Proceeds from exercise of options LA $ Calculate the incremental shares oustanding upon the exercise of options. (Round answer to O decimal places, e.g. 1,525.) The incremental shares oustanding upon the exercise of options eTextbook and Media 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, e.g. 15.25.) Potentially dilutive security 4% Bonds eTextbook and Media Incremental Numerator Effect Incremental Denominator Effect SA EPS Calculate the after-tax interest paid on the 6% bonds. After-tax interest on 6% bonds converted eTextbook and Media $ Determine an incremental per share effect for 6% bonds. (Round earnings per share to 2 decimal places, e.g. 15.25.) Potentially dilutive Incremental Numerator Effect Incremental Denominator Effect security 6% Bonds eTextbook and Media SA $ Rank the potentially dilutive securities from most dilutive to least dilutive. 4% Bonds 6% Bonds $0.69 Preferred shares Options > > > SA EPS Calculate diluted earnings per share for 2023. (Round earnings per share to 2 decimal places, e.g. 15.25.) Numerator $ Basic Sub Total Sub Total Sub Total Diluted EPS > $ Denominator LA EPS $