two part question

Bug Guy's capital structure was as follows: December 31, 2018 Number of outstanding common shares 10,000 Number of convertible preferred shares 1,000 10% convertible bonds $120,000 During 2018, Bug Guy paid dividends of $3.00 per share on its preferred stock. The preferred shares are convertible into 2,000 shares of common stock, and the 10% bonds are convertible into 3,000 shares of common stock. Assume the income tax rate is 30%. If net income for 2018 is $42,000, Bug Guy should report diluted earnings per share as Bug Guy's capital structure was as follows: Number of outstanding common shares Number of convertible preferred shares 10% convertible bonds December 31, 2018 10,000 1,000 $120,000 During 2018, Bug Guy paid dividends of $3.00 per share on its preferred stock. The preferred shares are convertible into 2,000 shares of common stock, and the 10% bonds are convertible into 3,000 shares of common stock. Assume the income tax rate is 30%. If net income for 2018 is $29,200, Bug Guy should report diluted earnings per share as