Ehrlich Corporation has 400,000 shares of common stock outstanding throughout 2021. In addition, the corporation has 5,000, 20-year, 9% bonds issued at par in 2019. Each $1,000 bond is convertible into 20 shares of common stock after 9/23/22. During the year 2021, the corporation earned $900,000 of net income. The tax rate was 25%.

Instructions

Compute the basic and diluted earnings per share for 2021.

Ehrlich Corporation has 400,000 shares of common stock outstanding throughout 2021. In addition, the corporation has 5,000, 20-year, 9% bonds issued at par in 2019. Each $1,000 bond is convertible into 20 shares of common stock after 9/23/22. During the year 2021, the corporation earned $900,000 of net income. The tax rate was 25%. Instructions Compute the basic and diluted earnings per share for 2021