What be the diluted earnings per share for the year


Problem: Diluted EPS - At December 31, 2020, Thompson, Inc. had 800,000 shares of common stock outstanding. On October 1, 2021, an additional 160,000 shares of common stock were issued. In addition, Thompson had $10,000,000 of 5% convertible bonds outstanding at December 31, 2020, which are convertible into 360,000 shares of common stock. The bonds had been issued at face value. No bonds were converted into common stock in 2021. The net income for the year ended December 31, 2021, was $2,500,000. Assuming the income tax rate was 30%, the diluted earnings per share for the year ended December 31, 2021, should be (rounded to the nearest penny)

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Accounting Basics: What be the diluted earnings per share for the year
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