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Business, 01.12.2021 02:00 rbajaj9818

Information from the financial statements of Ames Fabricators, Inc., included the following: December 31
2021 2020
Common shares 100,000 100,000
Convertible preferred shares (convertible into 32,000 shares of common) 12,000 12,000
8% convertible bonds (convertible into 30,000 shares of common)$1,000,000 $1,000,000
Ames’s net income for the year ended December 31, 2021, is $500,000. The income tax rate is 25%. Ames paid dividends of $5 per share on its preferred stock during 2021.
Required:
Compute basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Do not round intermediate calculations.)

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