On January 1, 2020, Indigo Company issued 10-year, $1,880,000face value,6% bonds, at par. Each $1,000 bond is convertible into14shares of Indigo common stock. Indigo's net income in 2020 was $522,500, and its tax rate was20%. The company had110,000shares of common stock outstanding throughout 2020. None of the bonds were converted in 2020

Compute diluted earnings per share for 2020

Diluted earnings per share_______

b)Compute diluted earnings per share for 2020, assuming the same facts as above, except that $1,100,000of6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into5shares of Indigo common stock.(Round answer to 2 decimal places, e.g. $2.55.)

Diluted earnings per share_________