Please show calculations for: Basic EPS Incremental effect of preferred stock Diluted earnings per share after preferred Incremental effect of bonds Diluted earnings per share to report

Collins Corp.'s capital structure was as follows: December 31 December 31 outstanding shares of stock: Year 4 Year 5 100,000 Convertible preferred 10% convertible bonds $1,000,000 $1,000,000 During Year s, Collins paid dividends per share on its preferred stock of The preferred shares are convertible into 20,000 shares of common stock. The bonds are convertible into 30,000 shares of common stock. Assume that the income tax rate is 31% Net income for Year 5: $245,000 Required: Collins should report diluted earnings per share of (shown to the nearest cent) Required supporting computations to receive credit for correct answers 2.14 Basic earnings per share 1.55 dilutive because less than basic EPS Incremental effect of preferred stock Diluted earnings per share after preferred 2.30 antidilutive Incremental effect of bonds 2.04 Diluted earnings per share to report 16 Chapter