Headland Corporation had net income of $115,000 for the fiscal year ending December 31, 2021. The company pays 15% income tax. For fiscal 2021, the weighted average number of common shares was 23,000. Throughout fiscal 2021 Headland had a $480,000, 5% bond that was convertible to 10,000 common shares. On September 1, 2021, the company sold another new $945,000, 8% bond that was convertible to 21,000 common shares.

Calculate Headland's basic earnings per share. (Round answer to 2 decimal places, e.g. 15.25.) Basic EPS $ e Textbook and Media Calculate the after-tax interest paid on the 5% bonds. After-tax interest on 5% bonds $ e Textbook and Media Determine an incremental per share effect for 5% bonds. (Round earnings per share to 3 decimal places, e.g. 15.257.) Incremental Numerator Effect Incremental Denominator Effect Potentially dilutive security EPS 5% Bonds $ Calculate the after-tax interest paid on the 8% bonds. (Round answer to 0 decimal places, e.g. 5,125.) After-tax interest on 8% bonds $ eTextbook and Media Determine an incremental per share effect for 8% bonds. (Round earnings per share to 3 decimal places, e.g. 15.257.) Incremental Numerator Effect Incremental Denominator Effect Potentially dilutive security EPS 8% Bonds eTextbook and Media Rank the potentially dilutive securities from most dilutive to least dilutive. 5% bonds 8% bonds Calculate Headland's diluted earnings per share. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately). (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 EPS Sub Total Diluted EPS