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A 2 0 - 2 9 EPS, Cascade ( LO 2 0 - 2 , 2 0 - 3 , 2 0 - 4 )

A20-29 EPS, Cascade (LO 20-2,20-3,20-4)
Ashante Sports Collections Ltd.(ASCL) ended 205 with 860,000 common shares outstanding, after issuing 250,000 common shares for cash on 31 December. The tax rate is 30%. There were no other common share transactions during the period. Net earnings were $1,380,000. The following elements are part of ASCL's capital structure:
a. ASCL had $5,800,000(par value) of 4% bonds payable outstanding during the year. The bonds are convertible into 60 common shares for each $1,000 bond. Bond interest expense was $411,000 for the year.
b. ASCL had 48,000 options outstanding throughout 205 to purchase 205,000 common shares for $11 per share. The average share price during the year was $23. The options were not exercisable until 2010.
c. ASCL had 78,000, $2.05 preferred shares outstanding. The shares were cumulative. No dividends were declared in 20X6. The shares were convertible into 58,000 common shares.
d. ASCL had a contingent share agreement outstanding to issue 58,000 common shares to the prior shareholders of a company that ASCL had acquired in 20X2. The shares become issuable if the acquired company's operations accumulate $5,800,000 of postacquisition earnings before the end of 208. Earnings have been $3,580,000, to date, and the target is expected to be met in 207.
e. ASCL had $8,800,000(par value) of 3% bonds payable, issued on 31 March 205. The bonds are convertible into 50 common shares for each $1,000 bond. Bond interest expense was $289,750 for the 9 months of the year that the bond was outstanding.
Required:
Compute basic and diluted EPS for 20X5.(Do not round intermediate calculations. Round your answers to 2 decimal places.)
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Please redo first answer provided was incorrect
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