Information from the financial statements of Ames Fabricators, Inc., included the following:
|
December 31 |
|
|
|
|
2013 |
|
|
2012 |
|
| Common shares |
|
100,000 |
|
|
100,000 |
|
Convertible preferred shares
(convertible into 32,000 shares of common) |
|
12,000 |
|
|
12,000 |
|
|
10% convertible bonds
(convertible into 30,000 shares of common)
|
$ |
1,000,000 |
|
$ |
1,000,000 |
|
|
|
Ames's net income for the year ended December 31, 2013, is $500,000. The income tax rate is 40%. Ames paid dividends of $5 per share on its preferred stock during 2013.
|
Compute basic and diluted earnings per share for the year ended December 31, 2013.