Exercise 19-19 EPS; convertible preferred stock; convertible bonds; order of entry [LO19-7, 19-9]

Information from the financial statements of Ames Fabricators, Inc., included the following:

December 31

2016

2015

Common shares

100,000

100,000

Convertible preferred shares (convertible into 34,000 shares of common)

13,200

13,200

10% convertible bonds (convertible into 30,000 shares of common)

$

1,000,000

$

1,000,000

Amess net income for the year ended December 31, 2016, is $520,000. The income tax rate is 40%. Ames paid dividends of $5 per share on its preferred stock during 2016.

Required:

Compute basic and diluted earnings per share for the year ended December 31, 2016. (Enter your answers in thousands.)

	Numerator	/	Denominator	=	Earnings per Share
Basic EPS		/		=
Diluted EPS		/		=