Data for Schrute Powder Company at the end of 2012 follow. All bonds are convertible as indicated and were issued at their face amounts.

Instructions:
1. Compute basic and diluted EPS for 2012, 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, 2012, and that net income for the year was $1,326,700 (reflects reduction in interest due to bondconversion).

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Description of Bonds 10-year, 61/2% convertible bonds 20-year, 7% convertible bonds 25-year, 10h% convertible bonds Amount $ 600,000 .200,000 900,000 Date Issued Jan. I, 2006 Jan. 2007 June 30. 201I Conversion Terms 110 shares of commorn for each $1,000 bond 45 shares of common for each $1,000 bond 36 shares of common for each $1,000 bond Common shares outstanding at December 3, 2011 Net income for 2012 Income tax rate 880,000 $1.315,000 40%