Exercise 16-26 Ivanhoe Company's net income for 2020 is $53,400. The only potentially dilutive securities outstanding were 800 options issued during 2019, each exercisable for one share at $6. None has been exercised, and 10,300 shares of common were outstanding during 2020. The average market price of Ivanhoe's stock during 2020 was $25. (a) Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share $ (b) Assume the same facts as those assumed for part (a), except that the 800 options were issued on October 1, 2020 (rather than in 2019). The average market price during the last 3 months of 2020 was $25. (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 Exercise 16-25 On January 1, 2020, Kingbird Company issued 10-year, $2,090,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 14 shares of Kingbird common stock. Kingbird's net income in 2020 was $459,550, and its tax rate was 20%. The company had 101,000 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 $1,010,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Kingbird 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