The Shirley Company had net income for 2xx9 of $300,000. Beginning balance in $100 par, 8% cumulative preferred stock is $1,000,000. No dividends are…

The Shirley Company had net income for 2xx9 of $300,000.

Beginning balance in $100 par, 8% cumulative preferred stock is $1,000,000. No dividends are in arrears. $1,000,000 in 6% convertible bonds are outstanding during the year. Each $1,000 bond is convertible into 2 shares of common stock.

Beginning balance in retained earnings is $400,000

Beginning of the year outstanding common stock shares                                              100,000

Par value is $10

Issued additional shares common stock March 1st                                                              10,000

Received $12 per share

Purchased shares of treasury stock on September 1                                                         5,000

Paid $75,000

Issued 2 for 1 stock split on October 17th

Required: What is diluted earnings per share for the year?

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