Convertible Preterred Stock, Comert ble Bonds, and efs September j0. It also has tavo comvertble securtios ecstanding at the end ef 2016. These arel conversbie inte 3 shares of ceminon stock. Current dividends havn been dedared and paid. Fo date, no prefeired stsdek has been cooverted. stock, To dose, no bondt havn been ceeverted. Francs esrned oet income of $72500 durva 2016, The inceme tax rate is 20%4. Hegured 1. Compue the number af shares af cemmen ateck thek fravok should use an calcalating bser narrings per share for 201 e. Weighted averipe ehareb outsandingi 2. Calculate basic earnings per share for 2016. If required, round your answer to two decimal places. Basic earnings per share: $ 3. Calculste d futed earnings per share for 2016 and the incremental eps of the preferred stock and comvertible bonds. If required, tound your answers to two decimal places. Diluted eaminge per sharei 1 Incrementalearmess. ber shate Fiondsi. Preterredt 4a. Asteme the same tocts as above except thet net income induded a loss from dscontmved operntions of $18,000 net of inceme taxes. Compule basic tras. You da not hove to calculate dleted LPS for thid case. If required, reund your answer to tho tetamal placel. Batic eaming per thare: 3 4b. Show how the basic EPS you calculated should be reported to shareholders. You do not have to calculate dilluted EPS