Following is information taken fromSarasotaInc.'s December 31, 2021 balance sheet:

5% bonds payable, $6,391,000maturing December 31, 2022,

each $1,000 bond convertible into20common shares. $6,391,000 8% bonds payable, $5,333,000, maturing December 31, 2023,

each $1,000 bond convertible into28common shares at any time. $5,333,000

up to December 31, 2023

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

1 preferred share for 4 common shares,45,000shares outstanding. $900,000

Cumulative shares, no par-value,3,187,000shares outstanding

Sarasota's net income for 2021 was $8,586,000, 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 was3,716,000. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately).

Calculate the income effect of the dividends on preferred shares.

Dividends on preferred shares=$

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CalculateSarasota's basic EPS for 2021.(Round answer to 2 decimal places, e.g. 15.25.)

Basic EPS =$

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Calculate the after-tax interest paid on the 5% bonds.

After-tax interest on 5% bonds =$

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Determine an incremental per share effect for 5% bonds.(Round earnings per share to 3 decimal places, e.g. 15.257.)

Potentially dilutive security. Incremental Incremental Denominator EPS

Numerator Effect. Effect Numerator Effect.

5% Bonds $ $

Calculate the after-tax interest paid on the 8% bonds.

After-tax interest on 8% bonds=$

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Determine an incremental per share effect for 8% bonds.(Round earnings per share to 3 decimal places, e.g. 15.257.)

Potentially dilutive security. Incremental. Incremental Denominator Effect EPS

Numerator Effect

8% Bonds $ $

Determine an incremental per share effect for $5preferred shares.(Round earnings per share to 3 decimal places, e.g. 15.257.)

Potentially dilutive security. Incremental Incremental. EPS

Numerator Effect. Denominator Effect

$5Preferred shares

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Rank the potentially dilutive securities from most dilutive to least dilutive.

5% bonds= (Rank 1, Rank 2, Rank 3, Anti-dilutive)

8% bonds= (Rank 1, Rank 2, Rank 3, Anti-dilutive)

$5preferred shares= ( Rank 1, Rank 2, Rank 3, Anti-dilutive )

CalculateSarasota's diluted EPS for 2021.(Round calculations of EPS to 3 decimal places, e.g. $3.545 and provide final answer to 2 decimal places, e.g. 15.25.)

Numerator Denominator EPS

Basic $ $

(5% Bonds,8% bonds, preferred shares )

Sub Total

(5% Bonds,8% bonds, preferred shares)

Diluted EPS=