On January 2, 2024, Larocque Company issued at face value $21,000 of 2% bonds convertible in total into 1,200 shares of Larocque's common stock. No bonds were converted during 2024.

Throughout 2024, Larocque had 1,200 shares of common stock outstanding. Larocque's 2024 net income was $3,000. Larocque's income tax rate is 25%.

No potential common shares other than the convertible bonds were outstanding during 2024.

Larocque's diluted earnings per share for 2024 would be:

$1.38.

$1.25.

$2.50.

$1.43.