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Carla Corporation had net income of $125,000 for the fiscal year ending December 31, 2021. The company pays 15% income tax. For fiscal 2021, the
Carla Corporation had net income of $125,000 for the fiscal year ending December 31, 2021. The company pays 15% income tax. For fiscal 2021, the weighted average number of common shares was 25,000. Throughout fiscal 2021 Carla had a $460,000, 5% bond that was convertible to 11,000 common shares. On September 1, 2021, the company sold another new $930,000, 8% bond that was convertible to 18,000 common shares. Calculate Carla's diluted earnings per share. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately). (Round calculations of EPS to 3 decimal places, e.g. $3.545 and provide final answer to 2 decimal places, e.g. 15.25.) Numerator Denominator EPS Basic EPS $ 8% bonds Sub Total 5% bonds $ $ Diluted EPS
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