Isabelle Leclerc is the controller at Cullumber Pharmaceutical Industries, a public company. She is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Cullumber's external financial statements. The following is selected financial information for the fiscal year ended June 30, 2020: CULLUMBER PHARMACEUTICAL INDUSTRIES Selected Statement of Financial Position Information \begin{tabular}{lr} June 30,2020 & \\ Long-term debt & \\ Notes payable, 10% & $1,000,000 \\ 7% convertible bonds payable & 5,000,000 \\ 10% bonds payable & 5,000,000 \\ \hline Total long-term debt & $11,000,000 \\ \hline \end{tabular} Shareholders' equity Preferred shares, $4.50 cumulative, 100,000 shares authorized, 25,000 shares issued and outstanding $1,250,000 Common shares, unlimited number of shares \begin{tabular}{cr} authorized, 900,000 shares issued and outstanding & 4,500,000 \\ Contributed surplus-conversion rights & 400,000 \\ Retained earnings & 5,000,000 \\ Total shareholders' equity & $11,150,000 \\ \hline \hline \end{tabular} The following transactions have also occurred at Cullumber: 1. Options were granted by the company in 2018 to purchase 770,000 shares at $15 per share. Although no options were exercised during 2020 , the average price per common share during fiscal year 2020 was $20. 2. Each bond was issued at face value. The 7% convertible debenture will convert into common shares at 45 shares per $1,000 bond. It is exercisable after five years and was issued in 2019. Ignore any requirement to record the bonds' debt and equity components separately. 3. The $4.50 preferred shares were issued in 2018 . 4. There are no preferred dividends in arrears, and preferred dividends were not declared in fiscal year 2020. 5. The 0.9 million common shares were outstanding for the entire 2020 fiscal year. 6. Net income for fiscal year 2020 was $1.6 million, and the average income tax rate was 30%. Calculate diluted earnings per share for 2020 . (Round earnings per share to 2 decimal places, e.g. 15.25.) \begin{tabular}{llll} & Numerator & Denominator & EPS \\ \hline Basic & & & \end{tabular} Sub Total Diluted EPS Isabelle Leclerc is the controller at Cullumber Pharmaceutical Industries, a public company. She is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Cullumber's external financial statements. The following is selected financial information for the fiscal year ended June 30, 2020: CULLUMBER PHARMACEUTICAL INDUSTRIES Selected Statement of Financial Position Information \begin{tabular}{lr} June 30,2020 & \\ Long-term debt & \\ Notes payable, 10% & $1,000,000 \\ 7% convertible bonds payable & 5,000,000 \\ 10% bonds payable & 5,000,000 \\ \hline Total long-term debt & $11,000,000 \\ \hline \end{tabular} Shareholders' equity Preferred shares, $4.50 cumulative, 100,000 shares authorized, 25,000 shares issued and outstanding $1,250,000 Common shares, unlimited number of shares \begin{tabular}{cr} authorized, 900,000 shares issued and outstanding & 4,500,000 \\ Contributed surplus-conversion rights & 400,000 \\ Retained earnings & 5,000,000 \\ Total shareholders' equity & $11,150,000 \\ \hline \hline \end{tabular} The following transactions have also occurred at Cullumber: 1. Options were granted by the company in 2018 to purchase 770,000 shares at $15 per share. Although no options were exercised during 2020 , the average price per common share during fiscal year 2020 was $20. 2. Each bond was issued at face value. The 7% convertible debenture will convert into common shares at 45 shares per $1,000 bond. It is exercisable after five years and was issued in 2019. Ignore any requirement to record the bonds' debt and equity components separately. 3. The $4.50 preferred shares were issued in 2018 . 4. There are no preferred dividends in arrears, and preferred dividends were not declared in fiscal year 2020. 5. The 0.9 million common shares were outstanding for the entire 2020 fiscal year. 6. Net income for fiscal year 2020 was $1.6 million, and the average income tax rate was 30%. Calculate diluted earnings per share for 2020 . (Round earnings per share to 2 decimal places, e.g. 15.25.) \begin{tabular}{llll} & Numerator & Denominator & EPS \\ \hline Basic & & & \end{tabular} Sub Total Diluted EPS
