Deadline Corp. reported net income of $1,692,900 for 2017.Deadline's income tax rate was 30% and they reported no below the line items on their income statement.Deadline had 400,000 shares of common stock outstanding at1/01/17, issued an additional 300,000 shares on 7/1/17, and purchased 90,000 treasury shares on 11/1/17.The average market price of Behrend's stock during 2017 was $50.Throughout 2017 Behrend also had the following securities outstanding:

a.20,000 shares of $100 par value 6% cumulative preferred stock (annual preferred dividend requirement of $6/share).Each preferred share is convertible into 3 shares of common stock.

b.$10,000,000 of 8% bonds payable issued at face value.Each $1,000 bond is convertible into 20 shares of common stock.

c.Stock warrants to purchase 160,000 shares of Behrend Corp. common stock for $40/share.

1.Calculate basic EPS for 2017(show your work - answer should be $2.94/share),

2.Determine diluted EPS for 2017 (in formulating your answer, provide the "incremental effect" on the EPS numerator and denominator for each of the potentially dilutive securities a, b and c above)

P4. Common Stock Issuance, Treasury Stock, Preferred Stock, Dividends, Comprehensive Income, Disclosure. Castleline, Inc. reported the following shareholders' equity section as of the beginning of the current year: Stockholders' Equity Contributed Capital: Common Stock, $1 par value, 3,850,000 shares authorized, 905,000 shares $ 905,000 issued, and 821,500 shares outstanding Additional Paid-in Capital in Excess of Par Common 22,625,000 Total Contributed Capital 3': 23,530,000 Retained Earnings $ 8,957,450 Accumulated Other Comprehensive Income 1,057,600 Less: Treasury Stock (83.500 common shares at cost} {1 1370.000) Total Stockholders' Equity $ 31,875,050 During the current year, Castleline engaged in the following transactions affecting the stockholders' equity section of its current balance sheet. 1. 2. b.) Issued 400,000 shares of its $1 par value common stock at $31 per share. The underwriter charged a 3% fee for issuing the shares. The stock issue costs are not capitalized. Issued 500,000 shares of $10 par value 6% preferred stock (2,550,000 authorized) at $40 per share. These shares were privately placed and Castleline did not pay stock issue costs. . Purchased 220,000 shares of common stock at $32 per share. Declared a $450,000 dividend for the rst half of the year. (The declarations should be recorded sepa rately for the common and the preferred shares.) . Sold 105,000 of the treasury shares at $44 per share. (The 83,500 treasury shares on hand at the beginning of the year are considered sold rst. The company paid $20 per share for these shares of treasury stock). Paid the cash dividends