The Conklin Company lists the following stockholders equity items on 12/31/21: 5% Preferred Stock, $100 par, 50,000 shares authorized, 15,000 shares issued 1,500,000 Common Stock, $10 par, 500,000 shares authorized, 360,000 shares issued 3,600,000 Paid-in Capital in excess of par - Preferred 1,125,000 Paid-in Capital in excess of par - Common 2,460,000 Paid-in Capital - Treasury Stock Transactions 22,500 Paid-in Capital - Stock Options 30,000 Retained Earnings 1,946,730 Less: Treasury stock (4,500 shares at cost) (138,000) Total Stockholders' Equity 10,546,230

The following information is also available: (1) Net income for 2021 was $497,400. (2) The market price of the common stock at 12/31/21 is $26.30 per share, and the market price of the preferred stock is $105. The average price of the common stock during 2021 was $25.70. (3) Conklins income tax rate for 2021 is 21%. (4) There was no change in the number of common shares outstanding for 2021. (5) On 1/1/21, Conklin established a stock option plan for certain key executives. Five executives were each given the right to purchase 2,000 shares of Conklin common stock at a price of $24. The market price of the common stock on the date of grant was $25.00 and the market value of the options is $4. The options may be exercised any time after 1/1/21, and the executives must be in Conklins employ at the time of exercise. The service period is considered to be two years. (6) Conklins preferred stock is cumulative and convertible. Each share of preferred stock is convertible into 5 shares of common stock. (7) In addition to the dilutive equity securities discussed above, Conklin had two issues of convertible bonds outstanding for the period: (a) Conklin had $1,500,000 of 7% convertible bonds. The bonds were issued at par. Each $1,000 bond is convertible into 35 shares of common stock. (b) Conklin also had $1,000,000 of 6% convertible bonds. Bond interest expense each year is increased by $500 amortization of the discount. Each $1,000 bond is convertible into 50 shares of common stock.

Required: a) Compute Conklins earnings per share for 2021. b) Show the income statement presentation of Conklins earnings per share. c) Prepare the required disclosure for earnings per share, as it might appear in Conklins annual report.