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  3. bravo, inc., owns all of the stock of echo, inc. f

Bravo, Inc., owns all of the stock of Echo, Inc. For 2021, Bravo reports income...

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Accounting

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Bravo, Inc., owns all of the stock of Echo, Inc. For 2021, Bravo reports income (exclusive of any investment income) of $480,000. Bravo has 80,000 shares of common stock outstanding. It also has 5,000 shares of preferred stock outstanding that pay a dividend of $15,000 per year. Echo reports net income of $290,000 for the period and also happens to have 80,000 shares of common stock outstanding. Echo also has a liability from its 10,000,$100 bonds that pay annual interest of $8 per bond. With a tax rate of 21%, interest paid net of tax is $63,200. Each of Echo's bonds are convertible into two shares of common stock. Bravo owns none of these bonds. What amount should Bravo report as diluted earnings per share for 2021

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