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6 Problem 19-17 (Algo) EPS; options; convertible preferred; additional shares [LO19-4, 19-5, 19-6, 19-7, 19-...

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6 Problem 19-17 (Algo) EPS; options; convertible preferred; additional shares [LO19-4, 19-5, 19-6, 19-7, 19- 8, 19-9) 15 points On January 1, 2021, Tonge Industries had outstanding 660,000 common shares ($1 par) that originally sold for $30 per share, and 9,000 shares of 10% cumulative preferred stock ($100 par), convertible into 90,000 common shares. On October 1, 2021, Tonge sold and issued an additional 16,000 shares of common stock at $33. At December 31, 2021, there were 25,000 incentive stock options outstanding, issued in 2020, and exercisable after one year for 25,000 shares of common stock at an exercise price of $40. The market price of the common stock at year-end was $58. During the year, the price of the common shares had averaged $50. Net income was $800,000. The tax rate for the year was 25%. Required: Compute basic and diluted EPS for the year ended December 31, 2021. (Round "Earnings per share" answers to 2 decimal places. Enter your answers in thousands.) Answer is complete but not entirely correct. Numerator Denominator Earnings per share 1.07 Basic 1 $ $ 710,000 800,000 664,000 X 779,000 X Diluted $ 1.03

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