1. Common Stock Share transactions:

1/1: 100,000 shares of c/s issued and 9,000 shares t/s.

3/1 Purchased 3,000 shares of treasury stock

7/ 1: Issued 14,000 shares of common stock

9/1 Reissued 1,000 shares of treasury stock

2. Jacksons 2021 Net Income was $850,000
3. On 2/1/2021, Jackson issued 3,500 shares of cumulative, convertible p/s. The stock is $100 par value, 8% stock and each share is convertible into 4 shares of common stock. No dividend was declared in 2021.
4. Jackson has Convertible bonds. $800,000, 12% bonds. The bonds were issued for $860,652 with a yield of 10% on 1/1/2020. Interest is paid annually on December 31. Jackson uses the effective interest method to determine interest expense. Each $1,000 bond is convertible into 15 shares of common stock. (you will need to create an amortization table to compute interest expense)
5. Jackson has 12,000 options with an exercise price of $8. The average market price of Jacksons stock this year is $13.
6. Jacksons tax rate was 40%

1.Compute Basic Earnings per Share

2.Compute Diluted EPS, showing incremental EPS for each dilutive security and proving if each security is dilutive.