EPS Limited (EL) has the following capital structure at December 31, 2019:

8% convertible bonds, issued June 30, 2019, convertible

into 2 pre-stock split common shares for every $100 bond $1,000,000

10% bonds, due in annual instalments of $500,000 on January 1

of each year, beginning January 1, 2019 $5,000,000

4% cumulative preferred shares (125,000 outstanding) $3,000,000

Common shares 400,000 outstanding $4,000,000

The following additional information is available:

* During the year, the entire $1 million of previously issued 6% convertible bonds were converted into 20,000 common shares on June 30, 2019. The 8% convertible bonds were issued at the same time.

* On March 31, 2017, 25,000 warrants were issued for $2 each, allowing holders to purchase one pre-split common share per warrant for $50. All warrants are still outstanding at December 31, 2019.

* On September 30, 2019, there was a 2-for-1 stock split.

* At year end, EL common shares were trading at $28 per share, a $4 increase over market price per share at the beginning of the year (including the effect of retroactive adjustment due to the stock split).

* The income tax rate for 2019 is 25%. * Net income after tax for the year ended December 31, 2019, was $1.1 million.

* It is ELs company policy to update all agreements after a stock split such that arrangements made prior to the stock split are adjusted to reflect the split. For instance, if a bond was convertible into two pre-split shares, after the stock split, the bond would be convertible into four pos-split shares.

INSTRUCTIONS:

A. Calculate basic EPS for the year ended December 31, 2019. SHOW CALCS for EACS and Weighted average Shares

B. Calculate diluted EPS, SHOWING ALL CALC of each CONVERSION for EACS and Weighted average shares

Please print the answer and answer A and B part