16. Vasby Company provided the following information for the current year. Net income is $8,112,700 and the company is subject to a 40% tax rate. There are 1,021,100 shares of common stock outstanding for the entire year with an average market price of $30 per share. (Click the icon to view the information.) Read the requirements2. Requirement a. Based on the information provided, compute basic and diluted earnings per share (EPS) for the current year. Include all computations related to the application of antidilution sequencing. Begin by calculating the incremental income per share on each of the potentially dilutive securities and ranking their order of entry into the EPS computation. (Complete all answer boxes. Enter a "O" for any zero balances. Round the incremental income per share amounts to the nearest cent, $X.XX.) Increase in the Incremental Rank Order of Increase Number of Income per Entry into the EPS Potentially Dilutive Security in Income Common Shares Share Computation Employee options (1) Convertible preferred stock (2) Convertible debt (3) Complete the table below to calculate the basic and diluted EPS for the current year and to identify whether each security is dilutive or antidilutive. (Complete all answer boxes. Enter a "0" for any zero balances. Round all per share amounts to the nearest cent, $X.XX.) Income Available to Common Common Per Description Shareholders Shares Share (4) (5) Net income available to common Basic EPS (6' 1st: (7) (8) 2nd: (9) (10) 3rd: (11) Requirement b. Prepare the required income statement disclosures beginning with net income. (Complete all answer boxes. Round all EPS amounts to the nearest cent, $X.XX.) Vasby Company EPS Disclosure Income Statement (Partial) For the Current Year Net income Basic Earnings per Common Share Diluted Earnings per Common Share 1: More Info The company had three potentially dilutive securities outstanding for the full year. There are qualified employee options to acquire 99,000 shares of common stock at an exercise price of $20 per share. The stockholders' equity section of the balance sheet includes 85,300 shares of convertible preferred stock. The board of directors declared preferred dividends of $7.10 per share for the year. Each preferred share is convertible into 1 share of common stock. Finally, the company issued $6,600,000 face value, 7% convertible bonds at par value on January 1. Each $1,000 par value bond is convertible into 86 shares of common stock. 2: Requirements a. Based on the information provided, compute basic and diluted earnings per share for the current year. Include all computations related to the application of antidilution sequencing. b. Prepare the required income statement disclosures beginning with net income. 16. Vasby Company provided the following information for the current year. Net income is $8,112,700 and the company is subject to a 40% tax rate. There are 1,021,100 shares of common stock outstanding for the entire year with an average market price of $30 per share. (Click the icon to view the information.) Read the requirements2. Requirement a. Based on the information provided, compute basic and diluted earnings per share (EPS) for the current year. Include all computations related to the application of antidilution sequencing. Begin by calculating the incremental income per share on each of the potentially dilutive securities and ranking their order of entry into the EPS computation. (Complete all answer boxes. Enter a "O" for any zero balances. Round the incremental income per share amounts to the nearest cent, $X.XX.) Increase in the Incremental Rank Order of Increase Number of Income per Entry into the EPS Potentially Dilutive Security in Income Common Shares Share Computation Employee options (1) Convertible preferred stock (2) Convertible debt (3) Complete the table below to calculate the basic and diluted EPS for the current year and to identify whether each security is dilutive or antidilutive. (Complete all answer boxes. Enter a "0" for any zero balances. Round all per share amounts to the nearest cent, $X.XX.) Income Available to Common Common Per Description Shareholders Shares Share (4) (5) Net income available to common Basic EPS (6' 1st: (7) (8) 2nd: (9) (10) 3rd: (11) Requirement b. Prepare the required income statement disclosures beginning with net income. (Complete all answer boxes. Round all EPS amounts to the nearest cent, $X.XX.) Vasby Company EPS Disclosure Income Statement (Partial) For the Current Year Net income Basic Earnings per Common Share Diluted Earnings per Common Share 1: More Info The company had three potentially dilutive securities outstanding for the full year. There are qualified employee options to acquire 99,000 shares of common stock at an exercise price of $20 per share. The stockholders' equity section of the balance sheet includes 85,300 shares of convertible preferred stock. The board of directors declared preferred dividends of $7.10 per share for the year. Each preferred share is convertible into 1 share of common stock. Finally, the company issued $6,600,000 face value, 7% convertible bonds at par value on January 1. Each $1,000 par value bond is convertible into 86 shares of common stock. 2: Requirements a. Based on the information provided, compute basic and diluted earnings per share for the current year. Include all computations related to the application of antidilution sequencing. b. Prepare the required income statement disclosures beginning with net income