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On January 1, 2025, Skysong Company issued 10-year, $1,880,000 face value, 6\% bonds, at par. Each $1,000 bond is convertible into 16 shares of Skysong common stock. Skysong's net income in 2025 was $391,300, and its tax rate was 20%. The company had 91,000 shares of common stock outstanding throughout 2025. None of the bonds were converted in 2025. a. Compute diluted earnings per share for 2025 . (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $ b. Compute diluted earnings per share for 2025 , assuming the same facts as above, except that $910,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Skysong common stock. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $ eTextbook and Media Attempts: 0 of 3 used Current Attempt in Progress Waterway Company is constructing a building. Construction began on February 1 and was completed on December 31 . Expenditures were $2,016,000 on March 1, $1,296,000 on June 1 , and $3,052,000 on December 31. Waterway Company borrowed $1,137,000 on March 1 on a 5-year, 12\% note to help finance construction of the building. In addition, the company had outstanding all year a 10%,5-year, $2,453,000 note payable and an 11%,4-year, $3,176,000 note payable. Compute avoidable interest for Waterway Company. Use the weighted-average interest rate for interest capitalization purposes. (Round weighted-average interest rate to 4 decimal places, e.g. 0.2152 and final answer to 0 decimal places, e.g. 5,275.)

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