On January 1, 20X1, Elberta Company issued $50,000 of 4% convertible bonds, in total, into 5,000 shares of Elberta's common stock. No bonds were converted during 20X1. Throughout 20X1 Elberta had 5,000 shares of common stock outstanding. Elberta's 20X1 net income was $5,000. Elberta's income tax rate is 40 percent. No potentially dilutive securities other than the convertible bonds were outstanding during 20X1. What is Elberta's diluted earnings per share for 20X1? $1.16 $0.62 $0.70 $0.58