Question 22

Bramble Ltd reported Long-Term Liabilities and Shareholders' Equity in its December 31, 2021 balance sheet as follows:

Long Term Liabilities:
Bonds Payable		$2,200,000
6% interest, convertible to 40 common shares/$1,000 bond
Bonds Payable		$4,600,000
9% interest, convertible to 40 common shares/$1,000 bond
Shareholders' Equity:
Class A Preferred shares no par value, $3 dividend, cumulative, each preferred share convertible into 8 common shares, 240,000 authorized, issued and outstanding		$1,920,000
Class B Common shares No-par, 2,900,000 authorized, issued and outstanding		$5,800,000

All of the above reported bonds payable, preferred shares and common shares were outstanding throughout fiscal 2021. No transactions involving the bonds payable, preferred shares or common shares occurred during fiscal 2021, except for interest on the bonds payable. The bonds payable were all issued and sold at par. Preferred dividends had not been declared in fiscal 2020. Bramble also had Class B common stock written call options to purchase 100,000 common shares at $6.00 per share outstanding throughout fiscal 2021. No options were exercised during fiscal 2021. The fair market value of Bramble's common shares was $8.00 per share throughout fiscal 2021. Brambles income tax rate is 15%. The weighted average of common shares outstanding for 2021 was 2,900,000 common shares, and Bramble earned net income of $4,000,000

Options on the left = 6% bonds, 9% bonds, Class A pref shares, Options

Calculate Bramble's fiscal 2021 diluted earnings per share. (Round calculations of EPS to 3 decimal places, e.g. $3.545 and prov Numerator Denominator EPS Basic $ Sub Total Sub Total Diluted EPS