ea} es} eu} ex} ex} a. fl?) I]. epJ20 marks. Taylor Swift Inc's net Income for the year ended December 31r 2015r was $000,000. Taylor Swift's squad consisted of 100.000 ordinary shares outstanding at the beginning of the year. Taylor Swift declared and distributed a 10% stock dividend on June 1. 2015r and issued (sold) 10,000 ordinary shares on October 1. 2015. Select details of Taylor Swift's liabilities and equities follow: er} Bonds A $500,000. 4%, 12year. semiannual bonds issued on July 1, 2014. At the option of the holder, each $1,000 bond can be converted into 10 ordinary shares at any time before expiry. et) Bonds Et $500,000. 3%, semiannual bonds maturing September 30. 2022 [issued before this year). At the option of the holder, each $1,000 bond can be converted into 12 ordinary shares at any time before expiry. ev}100,000 convertible. cumulative preferred shares that are each entitled to dividends of $3.00 per annum. Dividends were not declared in 2014. Dividends of ew) $500,000 were declared and paid in 2015. At the option of the holder, each preferred share can be converted into one ordinary share at any time between January 1, 2020. and December 31, 2025. ey) Taylor Swift's corporate tax rate was 30%. fa} Assume that the effective rate of interest on the bonds equals the coupon rate. fbl Calculate Taylor Swift's basic earnings per share. T marks Prepare a schedule that sets out the income effect, share effect, and incremental EPS for each security that is convertible into ordinary shares. 10 marks