Kingbird Inc. had net income for the current year ending December 31, 2020 of $1,020,420. During the entire year, there were 501,000 common shares outstanding. The company had two classes of preferred shares outstanding: the Class A preferred shares were $2.13 cumulative shares of which 11,000 were outstanding, and were convertible to common shares at a rate of 1:1. There were 109,000 $6.13 Class B non-cumulative preferred shares outstanding that were also convertible at a rate of 1:1. Kingbird had outstanding a $1,000,000, 7% bond issued in 2009 that was convertible to 22.000 common shares. The company also had outstanding a $1,000,000,6% bond issued in 2010 that was convertible to 25,000 common shares. No dividends were declared or paid this year. Kingbird's tax rate is 38%. Calculate the income effect of the dividends on Class A preferred shares. $ $ Dividends on Class A preferred shares eTextbook and Media Assistance Used Calculate the income effect of the dividends on Class B preferred shares. $ Dividends on Class B preferred shares e Textbook and Media Calculate basic earnings per share. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately.) (Round answer to 2 decimal places, e.g. 15.25.) Basic earnings per share $ e Textbook and Media Calculate the after-tax interest paid on the 2009 bonds. $ After-tax interest on 2009 bonds converted e Textbook and Media Assistance Used Determine an incremental per share effect for 2009 bonds. (Round earnings per share to 3 decimal places, e.g. 15.257.) Incremental Numerator Effect Incremental Denominator Effect Potentially dilutive security EPS 2009 Bonds $ $ Calculate the after-tax interest paid on the 2010 bonds. $ After-tax interest on 2010 bonds converted e Textbook and Media Determine an incremental per share effect for 2010 bonds. (Round earnings per share to 3 decimal places, e.g. 15.257.) Incremental Numerator Effect Incremental Denominator Effect EPS Potentially dilutive security 8% Bonds $ $ $ e Textbook and Media Determine an incremental per share effect for Class A preferred shares. (Round earnings per share to 2 decimal places, e.g. 15.25.) Incremental Numerator Effect Incremental Denominator Effect Potentially dilutive security EPS Class A preferred shares $ $ $ Determine an incremental per share effect for Class B preferred shares. (Round earnings per share to 2 decimal places, e.g. 15.25.) Incremental Numerator Effect Incremental Denominator Effect EPS Potentially dilutive security Class B preferred shares $ $ e Textbook and Media Rank the potentially dilutive securities from most dilutive to least dilutive. 2009 bonds > 2010 bonds Class A preferred shares Sub Total > $ $ $ Diluted EPS e Textbook and Media Calculate diluted earnings per share. (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 S 2009 bonds 2010 bonds Class A preferred shares $ $ $ Class B preferred shares Diluted EPS Kingbird Inc. had net income for the current year ending December 31, 2020 of $1,020,420. During the entire year, there were 501,000 common shares outstanding. The company had two classes of preferred shares outstanding: the Class A preferred shares were $2.13 cumulative shares of which 11,000 were outstanding, and were convertible to common shares at a rate of 1:1. There were 109,000 $6.13 Class B non-cumulative preferred shares outstanding that were also convertible at a rate of 1:1. Kingbird had outstanding a $1,000,000, 7% bond issued in 2009 that was convertible to 22.000 common shares. The company also had outstanding a $1,000,000,6% bond issued in 2010 that was convertible to 25,000 common shares. No dividends were declared or paid this year. Kingbird's tax rate is 38%. Calculate the income effect of the dividends on Class A preferred shares. $ $ Dividends on Class A preferred shares eTextbook and Media Assistance Used Calculate the income effect of the dividends on Class B preferred shares. $ Dividends on Class B preferred shares e Textbook and Media Calculate basic earnings per share. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately.) (Round answer to 2 decimal places, e.g. 15.25.) Basic earnings per share $ e Textbook and Media Calculate the after-tax interest paid on the 2009 bonds. $ After-tax interest on 2009 bonds converted e Textbook and Media Assistance Used Determine an incremental per share effect for 2009 bonds. (Round earnings per share to 3 decimal places, e.g. 15.257.) Incremental Numerator Effect Incremental Denominator Effect Potentially dilutive security EPS 2009 Bonds $ $ Calculate the after-tax interest paid on the 2010 bonds. $ After-tax interest on 2010 bonds converted e Textbook and Media Determine an incremental per share effect for 2010 bonds. (Round earnings per share to 3 decimal places, e.g. 15.257.) Incremental Numerator Effect Incremental Denominator Effect EPS Potentially dilutive security 8% Bonds $ $ $ e Textbook and Media Determine an incremental per share effect for Class A preferred shares. (Round earnings per share to 2 decimal places, e.g. 15.25.) Incremental Numerator Effect Incremental Denominator Effect Potentially dilutive security EPS Class A preferred shares $ $ $ Determine an incremental per share effect for Class B preferred shares. (Round earnings per share to 2 decimal places, e.g. 15.25.) Incremental Numerator Effect Incremental Denominator Effect EPS Potentially dilutive security Class B preferred shares $ $ e Textbook and Media Rank the potentially dilutive securities from most dilutive to least dilutive. 2009 bonds > 2010 bonds Class A preferred shares Sub Total > $ $ $ Diluted EPS e Textbook and Media Calculate diluted earnings per share. (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 S 2009 bonds 2010 bonds Class A preferred shares $ $ $ Class B preferred shares Diluted EPS