Question: On January 2 , 2 0 2 1 , Sand Co . issued at par $ 2 , 0 0 0 , 0 0 0

On January 2,2021, Sand Co. issued at par $2,000,000 of 5% convertible bonds. Each $1,000 bond is convertible into 10 shares of common stock. No bonds were converted during 2021. Sand had 200,000 shares of common stock outstanding during 2021.Sand's 2021 net income was $900,000 and the income tax rate was 30%. Sand's diluted earnings per share for 2021 would be (rounded to two decimals):

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