The information below pertains to Kingbird Company for 2018.

Net income for the year

$1,150,0006% convertible bonds issued at par ($1,000per bond); each bond is convertible into

30shares of common stock

1,950,0006% convertible, cumulative preferred stock, $100par value; each share is convertible

into3shares of common stock

4,110,000Common stock, $10 par value

5,950,000Tax rate for 2018

40%Average market price of common stock

$25per share

There were no changes during 2018 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase73,000shares of common stock at $20per share.

Problem 16-8 The information below pertains to Kingbird Company for 2018. Net income for the year $1,150,000 6% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 1,950,000 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock 4,110,000 Common stock, $10 par value 5,950,000 Tax rate for 2018 40% Average market price of common stock $25 per share There were no changes during 2018 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 73,000 shares of common stock at $20 per share. (a) Compute basic earnings per share for 2018. (Round answer to 2 decimal places, e.g. $2.55.) Basic earnings per share $ (b) Compute diluted earnings per share for 2018. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share $ Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT