Reference no: EM132461530

The information below pertains to Blossom Company for 2021.

1. Net income for the year$1,210,0007% convertible bonds issued at par ($1,000 per bond);
2. each bond is convertible into 30 shares of common stock2,000,0006% convertible, cumulative preferred stock, $100 par value;
3. each share is convertible into 3 shares of common stock4,080,000Common stock, $10 par value6,130,000Tax rate for 202120%Average market price of common stock$25 per share

There were no changes during 2021 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 74,200 shares of common stock at $20 per share.

Question (a) Compute basic earnings per share for 2021. (Round answer to 2 decimal places, e.g. $2.55.)

Question (b) Compute diluted earnings per share for 2021. (Round answer to 2 decimal places, e.g. $2.55.)