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On January 1, 2020, Creddit, Inc. issued 10-year, $2,000,000 face value, 6% bonds, at par.Each $1,000 bond is convertible into 18 shares of Creddit common
On January 1, 2020, Creddit, Inc. issued 10-year, $2,000,000 face value, 6% bonds, at par.Each $1,000 bond is convertible into 18 shares of Creddit common stock.Creddit's net income in 2020 was $425,000, and its tax rate was 35%.The company had 100,000 shares of common stock outstanding throughout 2020.None of the bonds were converted in 2020.
Instructions:
a. Compute earnings per share for 2020(round to nearest cent)
b. Computer diluted earnings per share for 2020 (round to nearest cent)
Answer A ______
Answer B ______
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