Basic and Diluted EPS The following information was taken from the books and records of Ludwick, Inc.: 1. Net Income $ 420,000 2. Capital Structure: a. Convertible 6% bonds. Each of the 300, $1,000 bonds is convertible into 50 shares of common stock at the present date and for the next 10 years. 420,000 b. $ 10 par common stock, 200,000 shares issued and outstanding during the entire year. 2,000,000 c. Stock warrants outstanding to buy 16,000 shares of common stock at $20 per share 3. Other information: a. Bonds converted during the year None b. Income Tax Rate 30% c. Convertible debt was outstanding the entire year d. Avg Market Price per share of common stock during the year $32 e. Warrants were outstanding the entire year f. Warrants exercised during the year None Compute Basic and Diluted Earnings Per Share. Use the following format:

Security	Net Income	Adjustment	Adjusted Net Income	Shares	Adjustment	Adjusted Shares	Diluted EPS
Com. Stock	$420,000	---	$420,000	200,000	---	200,000	$2.10
Warrants	420,000	---
Conv. Bonds	420,000			206,000		221,000