The following question was already answered. Can you explain each step in detail. Where did the $96,000 value come from? The $50,000 value? The $30,000 value?

On January 1, 2020, Crocker Company issued 10-year, $2,000,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 15 shares of Crocker common stock. Crockers net income in 2020 was $400,000, and its tax rate was 20%. The company had 100,000 shares of common stock outstanding throughout 2020. None of the bonds were converted in 2020. (a) Compute diluted earnings per share for 2020. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share $enter diluted earnings per share rounded to 2 decimal placesEntry field with incorrect answer now contains modified data (b) Compute diluted earnings per share for 2020, assuming the same facts as above, except that $1,000,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Crocker common stock. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share $enter diluted earnings per share rounded to 2 decimal placesEntry field with incorrect answer now contains modified data.

Basic earning per share = Net income / Share outstanding =400000/100000=4 per share a) Diluted earning per share =(400000+96000)/(100000+30000)=3.82 per share b) Diluted earning per share =400000/(100000+50000)=2.67 per share