Colson Corp. had $700,000 net income I'm 2015. On Janurary 1, 2015 there were 200,000 shares of common stock outstanding. On April 1, 20,000 shares were issued and on September 1, Colson bought 30,000 shares of treasury stock.

There are 30,000 options issues in 2014 to buy common stock at $40 a share outstanding during the year. The market price of the common stock averaged $50 during 2015.

During 2015, there were 40,000 shares of convertible preferred stock outstanding. The preferred stock is $100 par, pays $3.50 a year dividend per share, and is convertible into three shares of common stock.

Colson issued $2,000,000 of 8% convertible bonds at face value during 2014. Each $1,000 bond is convertible into 30 shares of common stock.

Tax rate is 40%

Instructions: Compute the basic and diluted EPS for 2015. Show all computations.