The following information relates to Foster stock used in capital transactions:

In the second quarter of Year $1,$ Foster issued $600,000$ shares of convertible preferred stock for assets in a purchase transaction. The quarterly dividend on the convertible stock is $$0\mathrm{.}05$ per share, payable at the end of each quarter. Each share is convertible into one share of common stock.

Common shares outstanding at January $1,$ Year $2,$ were $3,300,000.$ 

$300,000$ shares of common stock were issued for cash on March $31,$ Year $2.$ 

The average market price for common stock for the first six months of Year $2$ was $$59$ per share.

Additionally:

At December $31$st of year $1,$ Foster Co$.$ issued $4\%$ convertible bonds with a principal of $$10,000,000,$ due in $20$ years, at $$1,000($par$).$ Interest is payable annually on December $31$st$.$ Each $$1,000$ bond is convertible into $20$ shares of common stock.

Foster did not declare or pay any dividends on its common stock for Year $2.$ 

Foster's quarterly net income for Year $2$ was:$$ 

Year $2$

$1$st quarter $$3,000,000$ 

$2$nd quarter $3,600,000$ 

$3$rd quarter $2,900,000$ 

$4$th quarter $3,100,000$ 

During Years $1$ and $2,$ Foster Corp., a calendar year$-$end company, had several transactions related to raising capital. The exhibit above contains the Foster stock information used in the capital transactions.

For each situation in the table below, in the amount column, enter the appropriate value as it relates to Foster's basic and diluted earnings per share computation for the six months ended June $30,$ Year $2.$ Use the facts in the exhibit on the next tab and assume no income taxes. Round all amounts to the nearest whole number, except for basic and diluted earnings per share. Round basic and diluted earnings per share to two decimal places. If an amount is zero, enter a zero $(0).$ 

Diluted Earnings per Share Worksheet

For the Six Months Ended June $30,$ Year $2$ 

Calculate the following Situation Amount

$1.$Weighted$-$average number of shares outstanding before dilution

$2.$Basic earnings per share

$3.$ Income available to stockholders plus assumed conversions

Dilutive effect of incremental shares from assumed conversion:

$4.$ Convertible preferred stock

$5.$ Convertible bonds

$6.$ Total dilutive potential common shares

$7.$ Total adjusted weighted$-$average shares after dilution

$8.$ Diluted earnings per share