Exercise 16-25 On January 1, 2017, Ivanhoe Company issued 10-year, $1,860,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 16 shares of Ivanhoe common stock. Ivanhoe's net income in 2017 was $274,000, and its tax rate was 40%. The company had 96,000 shares of common stock outstanding throughout 2017, None of the bonds were converted in 2017. (a) Compute diluted earnings per share for 2017. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share b) Compute diluted earnings per share for 2017, assuming the same facts as above, excep that $9 D of 6% con er ble referred stock was, issued instead of the bonds. Each 100 preferred share is convertible into 5 shares of Ivanhoe common stock. (Round answer t 2 decima places e.g sass. Diluted earnings per share