During 2016, Cambridge Company Had 20,000 Shares of $20 Par

Essay

During 2016, Cambridge Company had 20,000 shares of $20 par value common stock and 7,000 shares of 8%, $60 par value convertible preferred stock outstanding. Each share of preferred stock may be converted into three shares of common stock. Cambridge Company's 2016 net income was $1,300,000.
A. Compute basic earnings per share for 2016.
B. Compute diluted earnings per share for 2016.