Follow the format given at the end of the problem. Fill the missing parts. Show how you got each number. Thank you.

Question #4 Basic and diluted EPS. The following information was taken from the books and records of Ludwick, Inc.: 1. Net income 420,000 2. Capital structure: 2|Page Convertible 6% bonds. Each of the 300, $1,000 bonds is convertible into 50 shares of common stock at the present date and for the next 10 years. $10 par common stock, 200,000 shares issued and outstanding during the entire year. Stock warrants outstanding to buy 16,000 shares of common stock at $20 per share. a. 420,000 b. 2,000,000 c