Marigold Corporation reported net income of $$260,000$ in $2025$ and had $191,000$ shares of common stock

outstanding throughout the year. Also outstanding all year were $51,000$ options to purchase common stock at

$$10$ per share. The average market price of the stock during the year was $$15.$

Compute diluted eamings per share. $($Round answer to $2$ decimal places, eg $3\mathrm{.}55$

Dituted earnings per sha

On January $1,2025,$ Tamarisk Corporation issued $$4,360,000$ of $10-$year, $7\%$ convertible debentures at $104.$ Interest is to be paid

semiannually on June $30$ and December $31.$ Each $$1,000$ debenture can be converted into $8$ shares of Tamarisk Corporation $$100$ par

value common stock after December $31,2026.$

On January $1,2027,$ $$436,000$ of debentures are converted into common stock, which is then selling at $$109.$ An additional

$$436,000$ of debentures are converted on March $31,2027.$ The market price of the common stock is then $$115.$ Accrued interest at

March $31$ will be paid on the next interest date.

Bond premium is amortized on a straight$-$line basis.

Make the necessary journal entries for:

a$.$ December $31,2026.$

c$.$ March $31,2027.$

b$.$ January $1,2027.$

d$.$ June $30,2027.$

Record the conversions using the book value method. $($List all debit entries before credit entries. Credit account titles are automatically

indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the

amounts. Round answers to O decimal places, eg$,5,275.)$

No$.$ Date Account Titles and Explanation

Dec

a$.31,$

Interest Expense

$2026$

Premium on Bonds Payable

Cash

b$.$ Jan. $1,$

Bonds Payable

$152600$

Premium on Bonds Payable

CommonStock

Paid$-$in Capital in Excess of Par $-$ Common Stock