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Sarasota Corporation earned net income of $388,800 in 2020 and had 108,000 shares of common stock outstanding throughout the year. Also outstanding all year was

Sarasota Corporation earned net income of $388,800 in 2020 and had 108,000 shares of common stock outstanding throughout the year. Also outstanding all year was $750,000 of 5% bonds, which are convertible into 15,000 shares of common. Sarasota’s tax rate is 20 percent. Compute Sarasota’s 2020 diluted earnings per share.

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