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Tamarisk Inc. had net income for the current year ending December 31, 2020 of $1,152.760. During the entire year, there were 504,000 common shares outstanding.

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Tamarisk Inc. had net income for the current year ending December 31, 2020 of $1,152.760. During the entire year, there were 504,000 common shares outstanding. The company had two classes of preferred shares outstanding: the Class A preferred shares were $2.38 cumulative shares of which 10,000 were outstanding, and were convertible to common shares at a rate of 1:1. There were 103,000 $6.38 Class B non-cumulative preferred shares outstanding that were also convertible at a rate of 1:1. Tamarisk had outstanding a $1,000,000,8% bond issued in 2009 that was convertible to 22,000 common shares. The company also had outstanding a $1,000,000,7% bond issued in 2010 that was convertible to 26,000 common shares. No dividends were declared or paid this year. Tamarisk's tax rate is 39%. Calculate the income effect of the dividends on Class A preferred shares. Dividends on Class A preferred shares $ Calculate the income effect of the dividends on Class B preferred shares, Dividends on Class B preferred shares $ 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.) Basic earnings per share $ Calculate the after-tax interest paid on the 2009 bonds. After-tax interest on 2009 bonds converted $ Determine an incremental per share effect for 2009 bonds. (Round earnings per share to 3 decimal places, c.8. 15.257.) Incremental Numerator Effect Incremental Denominator Effect EPS Potentially dilutive security 2009 Bonds Calculate the after-tax interest paid on the 2010 bonds. After-tax interest on 2010 bonds converted $ Determine an incremental per share effect for 2010 bonds. (Round earnings per share to 3 decimal places, c.8. 15.257.) Incremental Numerator Effect Incremental Denominator Effect Potentially dilutive security 8% Bonds Determine an incremental per share effect for Class A preferred shares. (Round earnings per share to 2 decimal places, e.g. 15.25.) Incremental Numerator Effect Incremental Denominator Effect Potentially dilutive security Class A preferred shares $ Determine an incremental per share effect for Class B preferred shares. (Round earnings per share to 2 decimal places, e-8. 15.25.) Incremental Numerator Effect Incremental Denominator Effect Potentially dilutive security EPS Class B preferred shares 2009 bonds 2010 bonds Class A preferred shares Class B preferred shares 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.. 15.25.) Numerator Denominator Basic Sub Total Sub Total Diluted EPS

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