Assuming the following facts, prepare the income statement disclosures of basic and diluted earnings per share (EPS) for ABC Compnay for the year ending Dec. 31, 2016.

Show all of the steps related to your calculations, in the appropriate order, including the EPS calculated after each step. For convertible securities, clearly show the calculation of the incremental effect and show the order of entry into the EPS calculation.

Show the final income statement presentation of basic and diluted EPS. All EPS calculations should be rounded to cents (two decimal places).

*Net income for the year is $960,000 and the income tax rate is 30%.

*At 1/1/16 ABC had 80,000 shares of $12 par common stock and 10,000 shares of 6.0%, $100 par, cumulative, convertible preferred stock outstanding.

*Each share of preferred stock was convertible into three shares of common stock. As of 12/31/16 none of the preferred stock had actually been converted.

*April 1 and Sept. 1, respectively, the company issued 40,000 and 20,000 additional shares of common stock.

*On October 1, ABC declared and issued a 10% stock dividend.

*Two different sets of stock were outstanding throughout 2016. Options issued in 2013 allowed the purchase of 10,000 shares of common stock at $25 per share. Options issued in 2014 allowed the purchase of 15,000 shares of common stock at $22 per share. AS of 12/31/16 none of the options had been exercised, but all were still outstanding and able to be exercised.

*Bonds payable of $5,000,000 were outstanding on 1/1/16. The bonds were issued several years ago at face value and the stated rate on the bonds is 7.5%. Each $1,000 bond is convertible into 20 shares of common stock. To date no bonds have been converted.

*ABC's average market price of its common stock was $23 per share during 2016.