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Convertible Bonds and EPS Dream Corporation reported net income of $44,000 for 2019. The company has 10,000 shares of common stock issued and outstanding for
Convertible Bonds and EPS Dream Corporation reported net income of $44,000 for 2019. The company has 10,000 shares of common stock issued and outstanding for all of 2019 and no preferred stock. During 2018, Dream issued $400,000 of 8% convertible bonds at par value. Each $1,000 bond can be converted into 24 shares of common stock. No bonds have been converted as of December 31, 2019. Dream has a 30% tax rate. Required: 1. Calculate the earnings per share amounts that Dream should disclose on its 2019 income statement. If required, round your answer to two decimal places. Basic EPS: $ per share Diluted EPS: $ per share
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