During all of 2015, the Ellis Corporation had 380,000 shares of $25 par value common stock outstanding. On Jan 1 2015, 2,000, 8% percent bonds were issued with a face value of $1,000 each. To enhance the bond sale, the company offered a conversion of 50 shares of common stock for each bond at the option of the purchaser. Net income for 2015 was $564,000. Which was after the decreasing loss from discontinued operations of $73,500 (net of tax benefit) The income tax rate was 30 percent.

CALCULATE:

a) Calculate Basic EPS

b) Calculate the effect of the assumed conversion of the bonds on the net income and on the weighted average shares outstanding.

c) Calculate diluted EPS

d) Show the required financial statement presentation for Basic EPS and Diluted EPS