On January 1, 2017, Wildhorse Company issued 10-year, $1,980,000face value,6% bonds, at par. Each $1,000 bond is convertible into15shares of Wildhorse common stock. Wildhorse's net income in 2017 was $304,000, and its tax rate was40%. The company had102,000shares of common stock outstanding throughout 2017. None of the bonds were converted in 2017.

(a)Compute diluted earnings per share for 2017.(Round answer to 2 decimal places, e.g. $2.55.)

Diluted earnings per share$

(b)Compute diluted earnings per share for 2017, assuming the same facts as above, except that $1,020,000of6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into5shares of Wildhorse common stock.(Round answer to 2 decimal places, e.g. $2.55.)

Diluted earnings per share$