Computing EPS: Convertible Debt

Shaffer Corporation issued 180, $1,000, 10% convertible bonds in 2019 at face value. Each bond is convertible into 100 shares of common stock. Shaffer's net income for 2020 is $3,100,800 ($4,134,400 before tax). Considering all factors except convertible bonds, average common shares outstanding for 2020 were 1,818,000.

c. How do the answers to parts a and b change if the bonds were issued on July 1, 2020? Net Income Available to Weighted Avg. Common Per Common Stockholders Shares Outstanding Share Basic EPS $ 3,107,550 1,818,000 $ 1.71 Diluted EPS $ 3,114,300 1,827,000 $ 1.7 d. Ignoring part c how do the answers to parts a and b change if one-half of the bonds were converted on July 1, 2020? Net Income Available to Weighted Avg. Common Per Common Stockholders Shares Outstanding Share Basic EPS $ 3,025,350 x 1,822,500 $ 1.7 Diluted EPS $ 3,114,300 1,836,000 $ 1.7 c. How do the answers to parts a and b change if the bonds were issued on July 1, 2020? Net Income Available to Weighted Avg. Common Per Common Stockholders Shares Outstanding Share Basic EPS $ 3,107,550 1,818,000 $ 1.71 Diluted EPS $ 3,114,300 1,827,000 $ 1.7 d. Ignoring part c how do the answers to parts a and b change if one-half of the bonds were converted on July 1, 2020? Net Income Available to Weighted Avg. Common Per Common Stockholders Shares Outstanding Share Basic EPS $ 3,025,350 x 1,822,500 $ 1.7 Diluted EPS $ 3,114,300 1,836,000 $ 1.7