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Centurion, Inc. has 4 potentially dilutive securities. Net income for the year is $900,000 and the weighted average common shares outstanding is 600,000 shares. Computation

Centurion, Inc. has 4 potentially dilutive securities. Net income for the year is $900,000 and the weighted average common shares outstanding is 600,000 shares. Computation of the antidilution sequencing recorded the following:

Security Increase in Income Increase in Common Shares

Convertible Preferred Stock $30,000 12,000

Stock Warrants $0 7,000

Stock Options $0 (8,000)

Convertible Bonds $95,000 80,000

a) Compute basic EPS.

b) Determine the order of entry into the dilutive EPS computation.

c) Compute final diluted EPS.

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