Carson Beck corp held the following potentially dilutive contracts during the fiscal year ended Dec $31,2007$:

$8\%,5$ year convertible bonds $($$$1000$ per bond$).$ At $12/31/07$ each bond is convertible into $100$ shares of CS face$/$par value $=$ $$2,000,000$

$7\%,5$ year convertible bond $($$$1000$ per bond$).$ At $4/1/07,$ each bond is convertible into $80$ shares of CS face$/$par value $=$ $$1,500,000$

$6\%$ convertible, cumulative, fully participating PS$,$ $$100$ par value. At $12/31/06,$ each share is convertible into $6$ shares of CS$.$ face$/$par value $=$ $$3,000,000$

Stock options to purchase $100,000$ shares of CS at $$10$ per share

A contract w the firm$$s CEO to issue $40,000$ shares of CS in $2009$ in net income in $2009$ is at least $$1,000,000$

Additional info:

$8\%$ convertible bonds were issued on sept $1,2004.$ one $-$fourth of the $8\%$ convertible bonds were converted to CS on december $1,2007.$

$7\%$ convertible bonds were issued on april $1,2007.$

$6\%$ convertible PS was issued november $1,2005$

MR on $8\%$ bond on issue date was $10\%.$ MR on $7\%$ bond on issue date was $7\%.$ Firm uses SL method to amortize any discount of premium. Interest on both bonds is paid semi$-$annually.

NI for $2007=$ $$1,200,000$

On jan $1,2007,600,000$ shares of carson back corp CS were outstanding. On feb $1,2007,$ the firm issued an additional $100,000$ shares of CS$,$ and on nov $1,2007,$ the firm repurchased $20,000$ shares and then did a $2-$for$-1$ stock split

Firm declared and paid $$400,000$ of dividends to the $6\%$ PS mentioned above. This included one year of dividends in arrears. The only preferred shares outstanding during $2007$ were the $6\%$ preferred shares mentioned above

All convertible bonds and convertible preferred shares were immediately convertible on the day they were issued. The rate of conversion is to be automatically adjusted for stock splits and stock dividends. All stock options vested in $2006.$

Average market price of CS during $2007=$ $$25$ per share

Tax rate for $2007=40\%$

Calculate basic and diluted EPS