On January 2, 2018, L Co. issued at face value $20,000 of 4% bonds convertible in total into 1,000 shares of L's common stock. No bonds were converted during 2018.

Throughout 2018, L had 1,000 shares of common stock outstanding. L's 2018 net income was $2,000. L's income tax rate is 50%.

No potential common shares other than the convertible bonds were outstanding during 2018.

L's diluted earnings per share for 2018 would be: