Vaughn Corporation issued 20-year, $9,500,000 face value, 8% convertible debentures on January 1, 2020. The bonds have a

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Vaughn Corporation issued 20-year, $9,500,000 face
value, 8% convertible debentures on January 1, 2020. The bonds
have a par value of $1,000, with interest payable semiannually. The
initial conversion ratio is 10:1, and in 3 years it will
increase to 12:1. At the date of issue, the bonds were sold
at 105. Bond premium is amortized on a straight-line
basis. Vaughn’s effective tax rate was 40%. Net income in
2020 was $25,830,000, and the company
had 11,770,000 common shares issued and outstanding
during the entire year.

Compute both basic and diluted earnings per
share. (Round answers to 2 decimal places, e.g.
2.55.)
Basic earnings per share
$enter the basic earnings per share in dollar rounded to 2
decimal places
Diluted earnings per share
$enter the diluted earnings per share in dollar rounded to 2
decimal places