Reference no: EM132515290
Question - Information from the financial statements of Ames Fabricators, Inc., included the following:
December 31 2021 2020 Common shares 100,000 100,000 Convertible preferred shares (convertible into 32,000 shares of common) 12,000 12,000 8% convertible bonds (convertible into 30,000 shares of common) $1,000,000 $1,000,000
Ames's net income for the year ended December 31, 2021, is $500,000. The income tax rate is 25%. Ames paid dividends of $5 per share on its preferred stock during 2021.
Required - Compute basic and diluted earnings per share for the year ended December 31, 2021.