Question: Exercise 16-24 a The Larkspur Corporation issued 10-year, $4,910,000 par, 7% callable convertible subordinated debentures on January 2, 2020. The bonds have a par

convertible subordinated debentures on January 2, 2020. The bonds have a par

Exercise 16-24 a The Larkspur Corporation issued 10-year, $4,910,000 par, 7% callable convertible subordinated debentures on January 2, 2020. The bonds have a par value of $1,000, with interest payable annually. The current conversion ratio is 13: 1, and in 2 years it will increase to 19:1. At the date of issue, the bonds were sold at 97. Bond discount is amortized on a straight-line basis. Larkspur's effective tax was 20%. Net income in 2020 was $8,750,000, and the company had 2,175,000 shares outstanding during the entire year. Compute both basic and diluted earnings per share. (Round answers to 2 decimal places, e.g. $2.55.) Basic earnings per share Diluted earnings per share

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