Sheridan Corporation had a net income for the current year ending December 31, 2021 of $ 1,270,000. Throughout 2021 the following items were outstanding:

		414,000 common shares
		19,500 Class A $ 3 cumulative preferred shares that were convertible to common shares at a rate of 1:1
		48,000 Class B $ 4 non-cumulative preferred shares that were convertible at a rate of one common share for every two preferred shares.
		$ 486,000, 8% bonds that were convertible to 13,500 common shares
		$ 318,000, 10% bonds convertible to 10,000 common shares

No dividends were declared or paid in 2021. Sheridans tax rate is 25%.

1) Calculate the income effect of the dividends on Class B preferred shares.

2) Calculate the after-tax interest paid on the 8% & 10% bonds

3) Determine an incremental per share effect for 8% & 10% bonds and Class B preferred shares

4):

4) 4

4)

Calculate diluted earnings per share. (Round calculations of EPS to 3 decimal places, eg. $3.545 and provide final answer to 2 decimal places, e.g. 15.25.) Numerator Denominator EPS $ 1211500 414000 $ $ Basic 2.93 8% bonds 38879.75 13500 Sub Total 1250379.75 427500 2.92 10% bonds 31799.75 10,000 Sub Total 1282179.50 437500 2.93 Class A preferred shares 58500 19500 $ $ 1340679.50 457000 $ 2.93 Diluted EPS Calculate diluted earnings per share. (Round calculations of EPS to 3 decimal places, eg. $3.545 and provide final answer to 2 decimal places, e.g. 15.25.) Numerator Denominator EPS $ 1211500 414000 $ $ Basic 2.93 8% bonds 38879.75 13500 Sub Total 1250379.75 427500 2.92 10% bonds 31799.75 10,000 Sub Total 1282179.50 437500 2.93 Class A preferred shares 58500 19500 $ $ 1340679.50 457000 $ 2.93 Diluted EPS