Earnings Per ShareEarnings Per ShareWarrants to purchase $20,000$ shares of common stock at $$38$ per share were attached to the preferred stock at the time of issuance. The warrants, which

on December $31,2024,$ were outstanding at December $31,2019.$

Olmstead's effective income tax rate was $30\%$ for $2018$ and $2019.$

Required:

Round earnings per share to two decimal places.

Compute the number of shares that should be used for the computation of basic earnings per share for the year ended December $31,2019.$

$$ shares

Compute the basic earnings per share for the year ended December $31,2019.$

$

$$ per share

Compute the number of shares that should be used for the computation of diluted earnings per share for the year ended December $31,2019.$

$x$ shares

Compute the diluted earnings per share for the year ended December $31,2019.$

$

$x$ per share

Olmstead Corporation's capital structure is as follows:

The following additional information is available:

On September $1,2019,$ Olmstead sold $36,000$ additional shares of common stock.

Net income for the year ended December $31,2019,$ was $$750,000.$

During $2019,$ Olmstead paid dividends of $$3$ per share on its nonconvertible preferred stock.

The $8\%$ convertible bonds are convertible into $40$ shares of common stock for each $$1,000$ bond.

of tax$)$ related to the options is $$2$ per share.

Olmstead's effective income tax rate was $30\%$ for $2018$ and $2019.$

Required:

Round earnings per share to two decimal places.

Compute the number of shares that should be used for the computation of basic earnings per share for the year ended December $31,2019.$

$$ shares

Compute the basic earnings per share for the year ended December $31,2019$

$$,$ per share

Compute the number of shares that should be used for the computation of diluted earnings per share for the year ended December $31,2019.$

$x$ shares

Compute the diluted earnings per share for the year ended December $31,2019$

$$1\mathrm{.}97$ per share

Olmstead Corporation's capital structure is as follows:

December $31$

$20192018$

Outstanding shares of:

Common stock $336,000300,000$

Nonconvertible preferred stock $10,00010,000$

$8\%$ convertible bonds $$1,000,000$ $$1,000,000$

The following additional information is available:

On September $1,2019,$ Olmstead sold $36,000$ additional shares of common stock.

Net income for the year ended December $31,2019,$ was $$750,000.$

During $2019,$ Olmstead paid dividends of $$3$ per share on its nonconvertible preferred stock.

The $8\%$ convertible bonds are convertible into $40$ shares of common stock for each $$1,000$ bond.

Unexercised compensatory share options to purchase $30,000$ shares of common stock at $$20\mathrm{.}50$ per share were outstanding at the beginning and end of $2019.$ The average market price of Olmstead's common stock was $$36$ per share during $2019.$ The market price was $$33$ per share at December $31,2019.$ The unrecognized compensation cost $($net of tax$)$ related to the options is $$2$ per share.

Warrants to purchase $20,000$ shares of common stock at $$38$ per share were attached to the preferred stock at the time of issuance. The warrants, which expire on December $31,2024,$ were outstanding at December $31,2019.$

Olmstead's effective income tax rate was $30\%$ for $2018$ and $2019.$

Required:

Round earnings per share to two decimal places.

$1.$ Compute the number of shares that should be used for the computation of basic earnings per share for the year ended December $31,2019.$

fill in the blank $1$

shares

$2.$ Compute the basic earnings per share for the year ended December $31,2019.$

$ fill in the blank $2$

per share

$3.$ Compute the number of shares that should be used for the computation of diluted earnings per share for the year ended December $31,2019.$

fill in the blank $3$

shares

$4.$ Compute the diluted earnings per share for the year ended December $31,2019.$

$ fill in the blank $4$

per share