Part 2:
a) Determine an incremental per share effect for the Class B preferred Shares.
b) Rank the dilutive securities from most dilutive to least dilutive
c) Calculate diluted earnings per share
Tamarisk Corporation had net income for the current year ending December 31,2023 of $1,231,100. Throushout 2023 the following items were outstanding: - 398,000 common shares - 19.000 Class A $3 cumulative preferred shares that were comvertible to common shares at a rate of 1:1 - 48,000 Class B $4 non-cumulative preferred shares that were comvertible at a rate of 1 common share for every 2 preferred shares. - $525,000,8% bonds that were convertible to 15,000 commonshares - $322000,10% bonds convertible to 10,000 common shares No dividends were declared or paid in 2023 Tamarisk's tax rate is 25% Calculate the income effect of the dividends for the Class A preferred shares. Dividends on Class A preferred shares $ Calculate the income effect of the dividends for the Class B preferred shares. (Do not leave amy answer feld blank. Eater 0 for ambunts.) Dividends on Class B preferred shares $ Calculate basic earnings per share. (For simpiicity. ignore the requirement to record the debt and equity portions ot the convertible bond separately). (Round answer to 2 decimal places, e.g. 15.25.) Basic earnings per share $ Calculate the after-tax interest paid on the 8% bonds. Determine an incremental per share effect for the 8% bonds. (Round earnings per share to 3 decimal places, e.g. 15.25.) Calculate the after-tax interest paid on the 10% bonds. After-tax interest paid Determine an incremental per share effect for the 10% bonds. (Round earnings per share to 3 decimal places, e.g. 15.251.) Determine an incremental per share effect for the Class A preferred shares. (Round earnings per share to 3 decimal places, e.g. 15.25.) Tamarisk Corporation had net income for the current year ending December 31,2023 of $1,231,100. Throughout 2023 the following items were outstanding: - 398,000 common shares - 19,000 Class A $3 cumulative preferred shares that were comertible to common shares at a rate of 1:1 - 48000 Class B 54 non-cumulative preferred shares that were convertibie at a rate of 1 common share for every 2 preferred shares. - $525,000,8% bonds that were comvertible to 15,000 common shares - $322,000,10% bonds comvertible to 10,000 common shares No dlvidends were declared or paid in 2023. Tamarisk's tax rate is 25\%. Calculate the income effect of the dividends for the Class A preferred shares. Dividends on Class A preferred shares Calculate the income effect of the dividends for the Class B preferred shares. (Do not leave any answer feld blank. Enter 0 for amounts.] Dividends on Class B preferred shares $5 Calculate basic earnings per share (For simplicity. ignore the requirement to record the debt and equity portions of the convertible bond separately. (Round answer to 2 decimol ploces, e.3. 15.25.) Basic earnings per share eTextbook and tofedia Caleutate the after-tax internet fald on the 8 bonds. A Aier tax interest paid Determine an incremental per share effect for the 8% bonds. (Round earnings per share to 3 decimat places, e.g. 15.25.) Calculate the after-taxinterest paid on the 10% bonds. After-tax interest paid Determine an incremental per share effect for the 10% bonds, (Round earnings per share to 3 decimal. ploces, e.8. 15.251.) Determine an incremental per share effect for the Class A preferred shares (Round earnings per share to 3 decimal places, e.1. 15.25.)
