Exercise 16-25 * Your answer is incorrect. Try again. On January 1, 2020, Martinez Company issued 10-year, $2,010,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 15 shares of Martinez common stock. Martinez's net income in 2020 was $518,400, and its tax rate was 20%. The company had 108,000 shares of common stock outstanding throughout 2020. None of the bonds were converted in 2020. (a) Compute diluted earnings per share for 2020. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share (b) Compute diluted earnings per share for 2020, assuming the same facts as above, except that $1,080,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Martinez common stock. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share Click if you would like to Show Work for this question: Open Show Work