The Elliott Company lists the following stockholders' equity items on 12/31/20: 6% Preferred Stock, $100 par, 50,000 shares authorized, 10,000 shares issued Common Stock, $10 par, 500,000 shares authorized, 240,000 shares issued Paid-in Capital in excess of par - Preferred Paid-in Capital in excess of par- r-Common Paid-in Capital - Treasury Stock Transactions Paid-in Capital - Stock Options Retained Earnings Less: Treasury stock (4,000 shares at cost) Total Stockholders' Equity 1,000,000 1,240,000 750,000 1,640,000 15,000 20,000 1,297,820 (92,000) 5.870,820 The following information is also available: (1) Net income for 2020 was $565,400. (2) The market price of the common stock at 12/31/20 is $25.30 per share, and the market price of the preferred stock is $105. The average price of the common stock during 2020 was $24.70. (3) Elliott's income tax rate for 2020 is 21%. (4) There was no change in the number of common shares outstanding for 2020. (5) On 1/1/20, Elliott established a stock option plan for certain key executives. Five executives were each given the right to purchase 2,000 shares of Elliott common stock at a price of $20. The market price of the common stock on the date of grant was $20.00 and the market value of the options is $4. The options may be exercised any time after 1/1/20, and the executives must be in Elliott's employ at the time of exercise. The service period is considered to be two years. (6) Elliott's preferred stock is cumulative and convertible. Each share of preferred stock is convertible into 4 shares of common stock. (7) In addition to the dilutive equity securities discussed above, Elliott had two issues of convertible bonds outstanding for the period: (a) Elliott had $1,500,000 of 7% convertible bonds. The bonds were issued at par. Each $1,000 bond is convertible into 25 shares of common stock. (b) Elliott also had $1,000,000 of 6% convertible bonds. Bond interest expense each year is reduced by $500 amortization of the premium. Each $1,000 bond is convertible into 30 shares of common stock. Required: a) Compute Elliott's earnings per share for 2020. b) Show the income statement presentation of Elliott's earnings per share. c) Prepare the required disclosure for earnings per share, as it might appear in Elliott's annual report. The Elliott Company lists the following stockholders' equity items on 12/31/20: 6% Preferred Stock, $100 par, 50,000 shares authorized, 10,000 shares issued Common Stock, $10 par, 500,000 shares authorized, 240,000 shares issued Paid-in Capital in excess of par - Preferred Paid-in Capital in excess of par- r-Common Paid-in Capital - Treasury Stock Transactions Paid-in Capital - Stock Options Retained Earnings Less: Treasury stock (4,000 shares at cost) Total Stockholders' Equity 1,000,000 1,240,000 750,000 1,640,000 15,000 20,000 1,297,820 (92,000) 5.870,820 The following information is also available: (1) Net income for 2020 was $565,400. (2) The market price of the common stock at 12/31/20 is $25.30 per share, and the market price of the preferred stock is $105. The average price of the common stock during 2020 was $24.70. (3) Elliott's income tax rate for 2020 is 21%. (4) There was no change in the number of common shares outstanding for 2020. (5) On 1/1/20, Elliott established a stock option plan for certain key executives. Five executives were each given the right to purchase 2,000 shares of Elliott common stock at a price of $20. The market price of the common stock on the date of grant was $20.00 and the market value of the options is $4. The options may be exercised any time after 1/1/20, and the executives must be in Elliott's employ at the time of exercise. The service period is considered to be two years. (6) Elliott's preferred stock is cumulative and convertible. Each share of preferred stock is convertible into 4 shares of common stock. (7) In addition to the dilutive equity securities discussed above, Elliott had two issues of convertible bonds outstanding for the period: (a) Elliott had $1,500,000 of 7% convertible bonds. The bonds were issued at par. Each $1,000 bond is convertible into 25 shares of common stock. (b) Elliott also had $1,000,000 of 6% convertible bonds. Bond interest expense each year is reduced by $500 amortization of the premium. Each $1,000 bond is convertible into 30 shares of common stock. Required: a) Compute Elliott's earnings per share for 2020. b) Show the income statement presentation of Elliott's earnings per share. c) Prepare the required disclosure for earnings per share, as it might appear in Elliott's annual report