Earnings Per Share with Convertible Bonds Issued During the Year Timber Corporation has 200,000 shares of $5-par value common stock outstanding. On October 1, 2000, Timber issued $800,000 par value 8 percent bonds at par value. The bonds mature on October 1, 2020. Each $1,000 par value bond can be converted into 50 shares of common stock at any time. Timber reported income from operations

(before interest expense) of $480,000 for the year 2000.

a. What amount should Timber report as net income for 2000?

b. What amount should be reported as basic earnings per share for 2000?

c. What amount should be reported as diluted earnings per share for 2000?