Corporation D earned net income of $70,000 during 19A and had an average of 10,000 shares of common stock outstanding. It also had a $50,000, 8% bond payable convertible after 3 years into 2,000 shares of common stock. There is no preferred stock outstanding. 

Required

a) Determine basic EPS and diluted EPS. Assume a 2% tax rate.

b) Assume the same information as in the previous problem except that the bond was issued on October 1. Once again, determine basic and diluted EPS.