Givens:

ON JANUARY 1, 1999 PEANUT PURCHASED 800 OF THE 1000 SHARES OF BUTTER STOCK AT BOOK VALUE PEANUT AND BUTTER HAVE NO INTERCOMPANY DEALINGS AND BUTTER DOES NOT PAY DIVIDENDS INFORMATION FOR 2016 ARE AS FOLLOWS:

INCOME STATEMENTS
	PEANUT	BUTTER
REVENUE	800,000	250,000
COST OF GOODS SOLD	300,000	80,000
INTEREST EXP	0	40000
INVESTMENT INCOME	0	0
INCOME TAX 30%	150000	39000
INCOME	350000	91,000
PARTIAL BALANCE SHEET
CONVERTIBLE BONDS	0	400,000
COMMON STOCK $1 PAR	90,000	1000

Required:

A) THE 10% CONVERTIBLE BONDS CAN BE CONVERTED INTO 50 TOTAL SHARES OF BUTTER STOCK MAKING THEM ANTI-DILUTIVE. DETERMINE THE EPS OF PEANUT.

B) THE 10% CONVERTIBLE BONDS CAN BE CONVERTED INTO 500 TOTAL SHARES OF BUTTER MAKING THEM DILUTIVE. DETERMINE THE EPS OF PEANUT.