At the beginning of 2020, Florida Rock

Industries had 25,000 shares of

common stock issued and outstanding

and 500 of $1,000, 6% bonds, each

convertible into 50 shares of common

stock. During 2020, FlAt the beginning

of 2020, Florida Rock Industries had

25,000 shares of common stock

issued and outstanding and 500 of

$1,000, 6% bonds, each convertible

into 50 shares of common stock.

During 2020, Florida Rock had

revenues of $156,500 and expenses

other than interest and taxes of

$104,000. Assume that the tax rate is

20%. None of the bonds was

converted or redeemed. (a) Compute

the basic EPS and diluted EPS for

2020. Round your answer to nearest

cent. (b) Assume the same facts as

those assumed for part (a), except

that the 500 bonds were issued on

October 1, 2020 (rather than in a prior

year), and none have been converted

or redeemed. Compute the basic EPS

and diluted EPS for 2020. Round your

answer to nearest cent.