Sheridan Inc. had net income for the current year ending December $31,2023$ of $$925,660.$ During the entire year, there were $507,000$ common shares outstanding. The company had two classes of preferred shares outstanding: the Class A preferred shares were $$2\mathrm{.}32$ cumulative shares of which $10,000$ were outstanding, and were convertible to common shares at a rate of $1$:$1.$ There were $110,000$ $$6\mathrm{.}32$ Class B non$-$cumulative preferred shares outstanding that were also convertible at a rate of $1$:$1.$ Sheridan had outstanding a $$1,000,000,6\%$ bond issued at par in $2012$ that was convertible to $21,000$ common shares. The company also had outstanding a $$1,000,000,4\%$ bond issued at par in $2013$ that was convertible to $25,000$ common shares. No dividends were declared or paid this

year. Sheridan's tax rate is $39\%.$

E$.)$ Determine an incremental per share effect for $2009$ bonds. $($Round earnings per share to $3$ decimal places, e$.$g$.15\mathrm{.}257.)$

Potentially dilutive security Incremental

Numerator Effect Incremental

Denominator Effect EPS

$2009$ Bonds $ $

F$.)$ Calculate the after$-$tax interest paid on the $2010$ bonds.

After$-$tax interest on $2010$ bonds converted $$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

G$.)$ Determine an incremental per share effect for $2010$ bonds. $($Round earnings per share to $3$ decimal places, e$.$g$.15\mathrm{.}257.)$

Potentially dilutive security Incremental

Numerator Effect Incremental

Denominator Effect EPS

$8\%$ Bonds $ $

H$.)$ Determine an incremental per share effect for Class A preferred shares. $($Round earnings per share to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

Potentially dilutive security Incremental

Numerator Effect Incremental

Denominator Effect EPS

Class A preferred shares $ $

I.$)$ Determine an incremental per share effect for Class B preferred shares. $($Round earnings per share to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

Potentially dilutive security Incremental

Numerator Effect Incremental

Denominator Effect EPS

Class B preferred shares $ $

J$.)$ Rank the potentially dilutive securities from most dilutive to least dilutive.

$($Options: Rank $1,$ Rank $2,$ Rank $3,$ Rank $4,$ Anti$-$Dilutive$)$

$2009$ bonds

$2010$ bonds

Class A preferred shares

Class B preferred shares

K$.)$ Calculate diluted earnings per share. $($Round calculations of EPS to $3$ decimal places, e$.$g$.$ $$3\mathrm{.}545$ and provide final answer to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

Numerator Denominator EPS

Basic $ $

Choose $1$: $(2009$ bonds, or $2010$ bonds, or Class A preferred shares, or Class B preferred shares$)$

Sub Total

Choose $1$: $(2009$ bonds, or $2010$ bonds, or Class A preferred shares, or Class B preferred shares$)$

Sub Total

Choose $1$: $(2009$ bonds, or $2010$ bonds, or Class A preferred shares, or Class B preferred shares$)$

$ $

Diluted EPS $=\_\_\_\_\_\_\_\_\_\_\_\_\_$