Crystal Corporation earned net income of $$900,000$ in $2023.$  It has a 

 

 complex capital structure as follows: $12,000$ shares outstanding of $8\%,$ $$100$ preferred stock, and $170,000$ shares issued of $$5$ common stock. There is also $30,000$ common stock in the treasury. The preferred stock can be converted into $10,000$ shares of common.In addition Crystal has Bonds Payable of $$300,000$ that pay interest of $6\%$ and can be converted into $25,000$ shares of common stock. 

 

 The applicable federal income tax rate is $25\%.$ 

 

 $1.$  Compute basic earnings per share for $2023.$ 

 

 $2.$ Compute diluted earnings per share for $2023.$ 

 

 Part B$.$   

 

Now assume the preferred stock is not convertible into any common shares.

 

 $1.$  Compute basic earnings per share for $2023.$ 

 

 $2.$ Compute diluted earnings per share for $2023.$