Mininova Corporation is preparing earnings per share data for 2020. The net income for the year ended December 31, 2020, was $400,000 and there were 60,000 common shares outstanding during the entire year. Mininova has the following two convertible securities outstanding: 

10% convertible bonds (each $1,000 bond is convertible into 25 common shares) ................ $100,000 

5% convertible $100 par value preferred shares (each share is convertible into two common shares)................$50,000 

Both convertible securities were issued at face value in 2017. There were no conversions during 2020, and Mininova's income tax rate is 24%. The preferred shares are cumulative. For simplicity, ignore the requirement to record the debt and equity components of the bonds separately. 

Instructions 

a. Calculate Mininova's basic earnings per share for 2020. Round to the nearest cent. 

b. Calculate Mininova's diluted earnings per share for 2020. Round to the nearest cent. Use the three-step process in arriving at your answers. Describe each step as you proceed to the final answer. 

c. Recalculate Mininova's basic and diluted earnings per share for 2020, assuming instead that the preferred shares pay a 14% dividend. Round to the nearest cent.