Answer Happy

The information below pertains to Marin Company for 2021. Net income for the year 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock Common stock, $10 par value Tax rate for 2021 Average market price of common stock Basic earnings per share $ $1,200,000 Diluted earnings per share $ 1,960,000 There were no changes during 2021 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 74,900 shares of common stock at $20 per share. (a) Compute basic earnings per share for 2021. (Round answer to 2 decimal places, e.g. $2.55.) (b) Compute diluted earnings per share for 2021. (Round answer to 2 decimal places, e.g. $2.55.) 3,930,000 6,190,000 20% $25 per share