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Blossom Corporation is preparing earnings per share data for 2020. The net income for the year ended December 31, 2020 was $409,000 and there were 58,500 common shares outstanding during the entire year. Blossom has the following two convertible securities outstanding: 10% convertible bonds (each $1,000 bond is convertible into 25 common shares) 3% convertible $100 par value preferred shares (each share is convertible into 2 common shares) $110,000 $51,000 Both convertible securities were issued at face value in 2017. There were no conversions during 2020, and Blossom's income tax rate is 23%. The preferred shares are cumulative. For simplicity, ignore the requirement to record the debt and equity components of the bonds separately. *(a1) Your answer is correct. Calculate the income effect of the dividends on preferred shares. Dividends on preferred shares $11530 Attempts: 1 of 5 used *(a2) Your answer is correct. Calculate Blossom's basic earnings per share for 2020. (Round answer to 2 decimal places, e.g. 15.25.) Basic earnings per share $16.97 Attempts: 1 of 5 used *(b1) Your answer is correct. Calculate the after-tax interest paid on the 10% bonds. After-tax interest $18470) Attempts: 1 of 5 used *(b2) Your answer is correct. Determine an incremental per share effect for each potentially dilutive security. (Round earnings per share to 2 decimal places, e.g. 15.25.) Incremental Numerator Effect Incremental Denominator Effect EPS Potentially dilutive security Bonds 10% $18470) $12750) $13.08) Attempts: 1 of 5 used *(63) x Your answer is incorrect. Try again. Determine an incremental per share effect for each potentially dilutive security. (Round earnings per share to 2 decimal places, e.g. 15.25.) Incremental Numerator Effect Incremental Denominator Effect Potentially dilutive security EPS 3% Preferred shares Cart 7 nn Attempts: 2 of 5 used

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