E$17\mathrm{.}13($LO$3)($EPS $$with Convertible Bonds and Preferred Shares$)$Mininova Corporation is

preparing earnings per share data for $2023.$The net income for the year ended December $31,2023,$was

$$400,000$and there were $60,000$common shares outstanding during the entire year. Mininova has the

following two convertible securities $$outstanding:

common shares$24\%.$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 $2023.$Round to $$the nearest cent.

b$.$Calculate Mininova's diluted earnings per share for $2023.$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. $($Your

final answer should be $$based on $$the format of $$Illustration $17\mathrm{.}12.)$

c$.$Recalculate Mininova's basic and diluted earnings per share for $2023,$assuming instead that the

preferred shares pay a$14\%$dividend$.$ Round to $$the nearest cent.