Larkspur Corporation had a net income for the current year ending December 31, 2021 of $1.210,000. Throughout 2021 the following items were outstanding: . . . 400,500 common shares 22,000 Class A $3 cumulative preferred shares that were convertible to common shares at a rate of 1:1 51,000 Class B $4 non-cumulative preferred shares that were convertible at a rate of one common share for every two preferred shares $542,500,8% bonds that were convertible to 15,500 common shares $283.000, 10% bonds convertible to 9,500 common shares . No dividends were declared or paid in 2021. Larkspur's tax rate is 25%. Calculate the income effect of the dividends on Class A preferred shares. Dividends on Class A preferred shares $ e Textbook and Media 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, eg. 15.25.) $ Basic earnings per share e Textbook and Media Calculate the after-tax interest paid on the 8% bonds $ After-tax interest on 8% bonds converted e Textbook and Media Determine an incremental per share effect for 8% bonds. (Round earnings per share to 2 decimal places, e.g. 15.25.) Incremental Numerator Effect Incremental Denominator Effect Potentially dilutive security EPS 8% Bonds $ e Textbook and Media Calculate the after-tax interest paid on the 10% bonds. $ After-tax interest on 10% bonds converted Determine an incremental per share effect for 10% bonds. (Round earnings per share to 2 decimal places, eg, 15.25.) Potentially dilutive security Incremental Numerator Effect Incremental Denominator Effect EPS 10% Bonds $ $ e Textbook and Media Determine an incremental per share effect for Class A preferred shares. (Round earnings per share to 2 decimal places, eg. 15.25.) Potentially dilutive security Incremental Numerator Effect Incremental Denominator Effect EPS Class A preferred shares $ $ Determine an incremental per share effect for Class B preferred shares. (Round earnings per share to 2 decimal places, eg. 15.25.) Potentially dilutive security Incremental Numerator Effect Incremental Denominator Effect EPS Class B Preferred shares $ $ e Textbook and Media Rank the potentially dilutive securities from most dilutive to least dilutive. Class B preferred shares 8% bonds Rank the potentially dilutive securities from most dilutive to least dilutive. Class B preferred shares 8% bonds 10% bonds $ $ Basic TA $ Sub Total Sub Total $ $ Diluted EPS
