on January 1 2020 pearl company issued 10 year $1890000 face value 6% bonds at par. each $1000 bond is convertible into 16 shares of pearl stick. pearl ner income in 2020 was $470000 and it's tax rate was 20%. the company had 94000 shares of common stock outstanding throughout 2020. none of the comes were converted in 2020

a. compute diluted earnings per share for 2020

b. computer diluted earnings per share for 2020 assuming the same facts as above except that $940000 of 6% convertible preferred stock was issues instead of the bomds. each $100 preferred share is convertible into 5 shares of pearl common stock

On January 1,2020, Pearl Company issued 10-year, $1,890,000 face value, 6% bonds, at par, Each $1,000 bond is convertible into 16 shares of Pearl common stock. Pear's net income in 2020 was $470,000, and its tax rate was 20%. The compamy had 94,000 shares of common stock outstanding throughout 2020. None of the bonds were comerted in 2020 (a) Compute diluted earnings per share for 2020, (Round answer to 2 decimal ploces, es 5255J Diluted earnings per share (b) Compute onuted eamings per share tor 2020, ansuming the same facts as above, except that $940,000 of 6 comerible oreferred stock was ksued instead of the bonds. Each $100 preferred share is comertible into 5 shares af Pearl common stock. inound onswer bo 2 decimal places, 1.52 .55 ) Diluted earnhes per share