Earnings per Share-Multiple Convertible Securities LO2LO3LO4LOSLO6LO8 Kishkumen Company had the following capital structure at December 31, 2015 and 2016: 2015 Shanes of stock ounstanding 776490 1,000 Common stock.. 550000 $7 convertible peefemed stock... 24,000 Bonds outstanding %10-year convertible bonds 1,650000 $2,200,000 The following additional information is available. (a)The conversion terms of the preferred stock and bonds at January 1, 2016, were as follows: Preferred stock, five shares of common for each share of preferred; convertible bonds, 30 shares of common for each $1000 bond. These terms are to be adjusted for any issued stock dividends or stock splits. (b)On May 1, 2016, Kishkumen sold an additional 70,000 shares of common stock, and on August 1, 2016, a 10% stock dividend on common shares was declared. (c) On October 1, 2016, 13,000 shares of preferred stock were converted to 71,500 shares of common stock (5.5 shares common for each share of preferred). The preferred stock was issued at $100 par in 2012 (d) On December 1, 2016, 25% of the convertible bonds were converted (41.8 shares of common for each bond converted). The bonds were issued at par in 2015 (e) On December 31, 2016, Klshkumen declared and paid a $7- per share dividen $2,300,000 d on outstanding preferred stock. Income for the year was (f) Stock options (issued and unexercised) to purchase 70, 000 shares of common stock at $30 per share were outstanding at the beginning of 2016. Average market price for 2016 was $46.36.The number of shares was adjusted to 77,000 and the exercise price was adjusted to$27.27 in response to the 10% stock dividend. (g) Stock warrants to purchase 70,000 shares of common stock at $30 per share were initially attached to the preferred stock. This was adjusted to 55,000 shares at $40.91 per share in response to the 10% stock dividend. The warrants expire on December 31, 2020, and were outstanding at December 31,2016 (h) The effective tax rate was 30% for both years. (i) On February 1, 2017, before the 2016 financial statements were issued, Kishkumen split its common stock two for one. Instructions: For the year ended December 31, 2016, compute basic and diluted EPS