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  3. crane corporation reported net income of $440,000

Crane Corporation reported net income of $440,000 in 2023 and had 375,000 common shares outstanding...

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Accounting

Crane Corporation reported net income of $440,000 in 2023 and had 375,000 common shares outstanding throughout the year. On
May 1,2023, Crane issued 5% convertible bonds. Each $1,000 bond is convertible into 120 common shares. Total proceeds at par
amounted to $800,000 and were allocated to the liability and equity components under the residual value method. The liability
component was measured first, at the present value of the stream of interest payments plus the present value of the bond maturity
value, all discounted at 8%(the interest rate that applies to similar straight bonds). At the time of issuance, the liability component was
recorded at $738,000. Crane's tax rate is 30%.
Calculate Crane's 2023 diluted earnings per share. (Round answer to 2 decimal places, e.g.15.25.)
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