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Martinez Corporation had a net income for the current year ending December 31, 2021 of $1,235,500. Throughout 2021 the following items were outstanding: 405,000 common shares 19,500 Class A $3 cumulative preferred shares that were convertible to common shares at a rate of 1:1 52,000 Class B $4 non-cumulative preferred shares that were convertible at a rate of one common share for every two preferred shares. $504,000,8% bonds that were convertible to 14,000 common shares $300,000, 10% bonds convertible to 9,000 common shares No dividends were declared or paid in 2021. Martinez's tax rate is 25%. Your answer is correct. Calculate the income effect of the dividends on Class A preferred shares. $ 58500 Dividends on Class A preferred shares Calculate the income effect of the dividends on Class B preferred shares. $ 208000 Dividends on Class B preferred shares e Textbook and Media X Your answer is incorrect. 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 decimal places, e.g. 15.25.) $ 2.39 Basic earnings per share Determine an incremental per share effect for Class B preferred shares. (Round earnings per share to 2 decimal places, e.g. 15.25.) Potentially dilutive security Incremental Numerator Effect Incremental Denominator Effect EPS Class B Preferred shares $ 26000 $ e Textbook and Media Rank the potentially dilutive securities from most dilutive to least dilutive. Class B preferred shares Anti-dilutive 8% bonds Rank 1 OLL 10% bonds Anti-dilutive Class A preferred shares Anti-dilutive Calculate diluted earnings per share. (Round calculations of EPS to 3 decimal places, e.g. $3.545 and provide final answer to 2 decimal places, e.g. 15.25.) Numerator Denominator EPS $ 969000 405000 $ 2.39 969000 405000 tal 30240 14000 2.16 bonds 0 0 tal 333240 419000 2.38 6 bonds 0 0 $ $ $