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Information from the financial statements of Ames Fabricators, Inc., included the following: December 31 2021 2020 Common shares 100,000 100,000 Convertible preferred shares (convertible into
Information from the financial statements of Ames Fabricators, Inc., included the following:
December 31 | ||||||||
2021 | 2020 | |||||||
Common shares | 100,000 | 100,000 | ||||||
Convertible preferred shares (convertible into 44,000 shares of common) | 15,600 | 15,600 | ||||||
8% convertible bonds (convertible into 30,000 shares of common) | $ | 1,000,000 | $ | 1,000,000 | ||||
Amess net income for the year ended December 31, 2021, is $560,000. The income tax rate is 25%. Ames paid dividends of $5 per share on its preferred stock during 2021. Required:
Compute basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Do not round intermediate calculations.)
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