Finn Company's capital structure is as follows: December 31 Outstanding shares of: Common stock Convertible preferred stock 8% nonconvertible bonds... The following additional information is available: 20x4 20x3 300,000 shares 10,000 shares 300,000 shares 10,000 shares $1,000,000 $1,000,000 Net income for the year ended December 31, 20x4, was $750,000. During 20x4 Finn Company paid dividends of $3.00 per share on its convertible preferred stock. Each share of preferred stock is convertible into four shares of common stock. Required: 1. Compute the number of shares that should be used for the computation of diluted earnings per share for the year ended December 31, 20x4. 2. Compute the diluted earnings per share for the year ended December 31, 20x4. (CPA, adapted) Problem 21-40 Diluted Earnings per Share (LO 2, LO 5)