Exercise 16-25 Your answer is incorrect. Try again. On January 1, 2017, Bridgeport Company issued 10-year, $2,060,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 16 shares of Bridgeport common stock. Bridgeport's net income in 2017 was $294,000, and its tax rate was 40%. The company had 101,000 shares of common stock outstanding throughout 2017. None of the bonds were converted in 2017. (a) Compute diluted earnings per share for 2017. (Round answer to 2 decimal places, e.g. $2.55) Diluted earnings per share 1.64 (b) Compute diluted earnings per share for 2017, assuming the same facts as above, except that $1,010,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Bridgeport common stock. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share Click if you would like to Show Work for this question: Open Show Work