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B. During 2020, Masefield, Inc. had the following convertible securities outstanding: • $200,000 of 6% convertible...

B. During 2020, Masefield, Inc. had the following convertible securities outstanding:

• $200,000 of 6% convertible bonds. Each $1,000 bond is convertible into 30 shares of common stock.

• $100,000 of 10%, $50 par, cumulative preferred stock. Each share is convertible into 4 shares of common stock.

Masefield, Inc. has an income tax rate of 30%. Its reported net income for 2020 was $210,000, and it had 26,000 shares of common stock outstanding all year.

Instructions: Calculate basic and diluted earnings per share for Masefield. You may omit ranking and impact of the dilutive securities. ****You must show computations.

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ekkarill92 answered 2 hours ago
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