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Question - On December 31, 2021, Sheridan Co. had 165,000 common shares outstanding. The company also had outstanding a convertible bond with a face value of $101,000 that had been issued in 2015. The bond paid 6% interest per year and was convertible to 2,020 common shares. Sheridan Co. had net income for 2021 of $676,500 and was subject to a 30% income tax rate. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately).
Required -
1. Calculate basic earnings per share.
2. ?Calculate diluted earnings per share.
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