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On January 1, 2020, Pina Company issued 10-year, $2,200,000 face value, 6% bonds, at par. Each $1,000 bond is convertible int

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Answer #1

Basic earning per share = 451050/97000 = 4.65

a) Diluted earning per share = Adjusted net income/Adjusted shares = 451050+2200000*6%*80%/(97000+30800) = 4.36

b) Diluted earning per share = 451050/145500 = 3.10

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