Earnings Per Share with Convertible Bonds Outstanding Glowtec Corporation has 200,000 shares of $5-par value common stock outstanding. It also has $800,000 par value 8 percent bonds outstanding that were issued at par value on January 1, 1998, and mature on January 1, 2018. Each $1,000 par value bond can be converted into 50 shares of common stock at any time. Glowtec reported income from operations (before interest expense) of $480,000 for the year 2000.

a. What amount should Glowtec report as net income for 2000, ignoring income taxes?

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?