Marathon Company reported the following data in its financial statements for the fiscal year ending...
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Marathon Company reported the following data in its financial statements for the fiscal year ending May 31, 2021: Net income for 2021 $5,665,000 Book value of 5% cumulative, convertible preferred $1,764,000 shares Number of stock options outstanding for purchase of common shares, exercisable at $14 per share 75,730 Dollar value of 8% convertible bonds $2,555,000 Average number of common shares outstanding during 2021 2,519,000 Income tax rate for 2021 22% The cumulative preferred shares outstanding can be converted to a total of 86,600 common shares. The bonds can be converted to a total of 89,900 common shares. All the preferred shares, bonds, and stock options were outstanding for the entire 2021 fiscal year. The average market price of the common shares in the 2021 fiscal year was $25. Required: 1. Calculate basic earnings per share for Marathon Company for the year ended May 31, 2021. (2 marks) 2. Calculate diluted earnings per share for Marathon Company for the year ended May 31, 2021
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