Kent Company has, in its Stockholders equity as of December 31, 2021, 1,365,285 shares of common stock issued and outstanding and 60,000 shares of 3%, convertible cumulative, $100 par value preferred stock issued and outstanding

Kent has the following in its books:

Net Income for 2021: $5,450,000

1,500 convertible bonds issued at par, ($1,000 per bond), paying interest of 3%. Interest is paid annually. Each bond is convertible into 10 shares of common stock. These bonds were issued in 2020.

3,000 convertible bonds issued at par, ($1,000 per bond), paying interest of 10%. Interest is paid annually. Each bond is convertible into 10 shares of common stock. These bonds were issued in 2019.

60,000 shares of 3% convertible, cumulative preferred stock, $100 par value; each share is convertible into 4 shares of common stock. These shares were issued in 2019

Employee Stock Options were granted in 2018 to executive employees. If exercised, they grant the employees to purchase 50,000 shares of common stock at $15 per share. None of these options were exercised yet

Additional information:

Tax rate for 2021 is 30%

Average market price of common stock for 2021 is $24 per share

There are no dividends in arrears as of January 1, 2021 for the companys cumulative preferred stock. No preferred or commons stock dividends were declared or paid in 2021.

There were no changes during 2021 in the number of common shares, preferred shares, or convertible bonds outstanding. Kent does not have treasury shares.

Instructions

Compute basic and diluted earnings per share for 2021. Steps to perform:

1. Calculate Basic EPS
2. Evaluate each securitys individual impact to EPS and rank them (make sure you include your final rank in your answer)
3. Evaluate each security for dilution and specify if each security is dilutive or antidilutive.
4. Calculate and Report Diluted EPS

Any help would be appreciated