On January 2, 2022, LD Co. issued at face value $20,000 of 4% bonds convertible in total into 1,000 shares of LD's common stock. No bonds were converted during 2022. Throughout 2022, LD had 1,000 shares of common stock outstanding. LD's 2022 net income was $2,000 and its income tax rate is 50%. No potential common shares other than the convertible bonds were outstanding during 2022.

Compute LD's diluted earnings per share for 2022, rounded to the nearest cent. Show your computation. No credit if not shown.