Reference no: EM132846261

Question - Jhonny Corp provides the following information for 2020

1. Net income $560,000

2. Capital structure

a) Convertible 6% bonds. Each of the 300, $ 1,000 bonds is convertible into 50 common shares for the next 10 years 300,000.

b) Common shares, 200,000 shares issued and outstanding during the entire year 2,000,000.

c) Stock options outstanding to buy 16,000 common shares at $ 20 per share.

3. Other information

a) Bonds converted during 2020 None

b) Income tax rate 30%

c) Convertible debt was outstanding the entire year

d) Average market price per common share during 2020 $32

e) Stock options were outstanding the entire year

f) Stock options exercised during 2020 None

Required - Calculate basic and diluted earnings per share for jhonny Corp in 2020.