Data for Dwight Powder Company at the end of 2009 follow. All bonds are convertible as indicated and were issued at their face amounts.

Instructions:
1. Compute basic and diluted EPS for 2009, assuming that no additional shares of common stock were issued during the year.
2. Compute basic and diluted EPS, assuming that the 10-year bonds were converted on July 1, 2009, and that net income for the year was $1,421,925 (reflects reduction in interest due to bondconversion).

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Description of Bonds 10-year, 6,5% convertible bonds 20-year, 7% convertible bonds 25-year, 10%% convertible bonds Amount $700,000 1,000,000 1,600.000 Date Issued Jan. 2003 Jan. I. 2004 June 30, 2008 Conversion Terms 100 shares of common for each $1,000 bond 50 shares of common for each $1,000 bond 32 shares of common for each S1,000 bond Additional information: Common shares outstanding at December 3, 2008. Net income for 2009.. Income tax rate. 700,000 $1.406,000 30%