Caldwell Stamping began the current year with $265,000$ common shares outstanding and issued an additional $120,000$ shares on September $1.$ The firm has $$11,200,000,1\mathrm{.}5\%$ convertible bonds outstanding for a full year $($i$.$e$.,$ $$168,000$ coupon interest per year$),$ which are convertible into $272,000$ shares of common stock. The firm issued the bonds at par and did not convert any during the current year. It also had $$1,230,000$ par value, $4\%$ nonconvertible, noncumulative preferred stock outstanding for the full year and declared dividends for the current year. The company is subject to a $40\%$ tax rate and net income is $$4,200,000.$ Assume that the $$4,200,000$ net income reported by Caldwell Stamping includes a $$796,000$ loss from discontinued operations, net of tax.

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Requirement a$.$ Based on this information, compute basic and diluted earnings per share $($EPS$)$ for the current year.

Begin with the basic earnings per share for income from continuing operations. $($Round the EPS to the nearest cent, $X$.$XX$.)$

Basic EPS from income from continuing operations for the current vear $=$

Requirements

a$.$ Based on this information, compute basic and diluted earnings per share for the current year.

b$.$ Prepare the earnings per share disclosure on the income statement beginning with income from continuing operations.

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