Coronado Industries had 209000 shares of common stock, 20500 shares of convertible preferred stock, and $1550000 of 4% convertible bonds outstanding during 2021. The preferred stock is convertible into 40500 shares of common stock. During 2021, Coronado paid dividends of $0.80 per share on the common stock and $4 per share on the preferred stock. Each $1,000 bond is convertible into 30 shares of common stock. The net income for 2021 was $599000 and the income tax rate was 40%. Diluted earnings per share for 2021 is (rounded to the nearest penny) $1.99. $2.40. $2.03. $2.15.

On december 31, 2013, coronado company issues 173,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $10. the fair value of the sars is estimated to be $5 per sar on december 31, 2014; $2 on december 31, 2015; $10 on december 31, 2016; and $8 on december 31, 2017. the service period is 4 years, and the exercise period is 7 years. prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan.