Use the same information as in E17.13 (ignoring part c). In addition, 40% of the convertible bonds were converted to common shares on April 1, 2020. The balances at December 31, 2020, appearing in E17.13 do not reflect the conversion of April 1, 2020. 

Instructions 

a. Calculate Mininova's weighted average number of common shares outstanding. Round to the nearest share. 

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

c. Calculate Mininova's diluted earnings per share for 2020. Round to the nearest cent. 

d. What do you notice about the results of the diluted earnings per share calculation when conversions occur during the year and when they do not occur? 

Data From E17.13.

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.