On December 31, 2019, Lingo. had 1,000,000 common shares outstanding. On January 1, 2020, Lingo issued 250,000 non-cumulative preferred shares, which were convertible into 500,000 common shares. During 2020, Lingo paid cash dividends of $ 450,000 to the common shares and $ 150,000 to the preferred shares. Net income for calendar 2020, was $ 4,500,000. Assuming an income tax rate of 30%, the diluted earnings per share for 2020 is

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The Answer of On December 31, 2019, Lingo. had 1,000,000 common shares outstanding. On January 1, 2020, Lingo issued 250,000 non-cumulative preferred shares, which were convertible into 500,000 common shares. During 2020, Lingo paid cash dividends of $ 450,000 to the common shares and $ 150,000 to the preferred shares. Net income for calendar 2020, was $ 4,500,000. Assuming an income tax rate of 30%, the diluted earnings per share for 2020 is