Eastwind Corp. had $1,000,000 net income in 2015. On January 1, 2015 there were 200,000 shares of common stock outstanding. On April 1, 20,000 shares were issued and on September 1, Adcock bought 30,000 shares of treasury stock. On October 1, the company declared a two-for-one stock split. On December 1, 20% stock dividend was issued. There are 30,000 options to buy common stock at $40 a share outstanding. The market price of the common stock averaged $50 during 2015. The tax rate is 40%.

During 2015, there were 40,000 shares of convertible cumulative preferred stock outstanding. The preferred is $100 par, pays $3.50 per share a year dividend, and is convertible into one share of common stock.

Eastwind issued $2,000,000 of 8% convertible bonds at face value on July 1, 2015. Each $1,000 bond is convertible into 30 shares of common stock.

Instructions

Compute the basic and diluted earnings per share for 2015. Hand write work.