Sunland Corporation had net income of $$42,000$ for the year ended December $31,2023,$ and weighted average number of common

shares outstanding of $10,000.$ The following information is provided regarding the capital structure:

$7\%$ convertible debt, $250$ bonds each convertible into $41$ common shares. The bonds were outstanding for the entire year.

The income tax rate is $40\%.$ The bonds were issued at par $($ $$1,050$ per bond$).$ No bonds were converted during the year.

$4\%$ convertible, cumulative $$100$ preferred shares, $1,000$ shares issued and outstanding. Each preferred share is convertible

into $2$ common shares. The preferred shares were issued at par and were outstanding the entire year. No shares were

converted during the year.

$($a$1)$

Your answer is correct.

Calculate the income effect of the dividends on preferred shares.

Dividends on preferred shares

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Your answer is correct.

Calculate the basic earnings per share for $2023.($Round answer to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

Basic earnings per share

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$($c$1)$

Your answer is correct.

Calculate the after$-$tax interest paid on the $7\%$ bonds.

After$-$tax interest on bonds converted

$($c$2)$

Your answer is incorrect.

Determine an incremental per share effect for $7\%$ bonds. $($Round earnings per share to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$