Following is information taken from Sheridan Inc.$\text{'}$s December $31,2023$ SFP:

$5\%$ bonds payable, $$5,656,000$ maturing December $31,2025,$

each $$1,000$ bond convertible into $19$ common shares

$$5,656,000$

$8\%$ bonds payable, $$4,701,000,$ maturing December $31,2026,$

each $$1,000$ bond convertible into $27$ common shares at any time up to December $31,2026,$$$4,701,000$

Cumulative preferred shares, $$5,$ no$-$par value, convertible at

$1$ preferred share for $4$ common shares, $51,700$ shares outstanding

$$1,034,000$

Common shares, no par$-$value, $2,986,000$ shares outstanding

Sheridan's net income for $2023$ was $$8,716,150,$ and the company was subject to an income tax rate of $20\%.$ Both

classes of bonds were outstanding the entire year, as were the preferred shares. The weighted$-$average number of

common shares outstanding during the period was $3,599,000.$

$($a$)$

Your answer is correct.

Calculate the income effect of the dividends on the preferred shares.

Dividends on preferred shares

$($b$)$

eTextbook and Media

Your answer is incorrect.

Calculate basic earnings per share. $($Round answer to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

Basic EPS $