1.

The company had 10,000 shares of common stock outstanding throughout the year.

In addition, as of January 1, the company had issued at par $45,000 of 9% convertible bonds.

The company has no other potentially dilutive securities

The bonds can be converted into a total of 4,000 common stock

The tax rate is 25%

Net income for the year was $75,000

A.Compute the Basic EPS

B.Compute the diluted EPS

C.Determine if the securities are dilutive or anti-dilutive

D.Prepare the Income statement presentation of the Basic and diluted EPS

2.

The company had 60,000 shares of common stock outstanding throughout the year.

In addition, as of January 1, the company had issued at par $600,000 of 11% convertible bonds that can be converted into 35 shares of common stock for each $1,000 bond

The company has no other potentially dilutive securities

The tax rate is 35%

Net income is $561,600

A.Compute the Basic EPS

B.Compute the diluted EPS

C.Determine if the securities are dilutive or anti-dilutive

D.Prepare the Income statement presentation of the Basic and diluted EPS