I. The following information was taken from the books and records of Eurton Corp:

1. Net income, 2017 $ 4,500

2. Capital structure:

a. Convertible bonds: 30 bonds issued and outstanding. Each $100 par value bond is convertible into 10 shares of common. $ 3,000

b. Noncumulative $50 par value preferred stock, 20 shares outstanding $ 1,000

c. Common stock, $1 par, 2,000 shares issued and outstanding $ 2,000

3. Other data:

a. The bonds, preferred, and common shares were outstanding for all of 2017.

b. None of the bonds were converted during the year.

c. The income tax rate is 30%.

d. The bonds carry a 5% interest rate ($150 total per year).

e. Preferred has a 4% annual dividend requirement. No dividends are in arrears.

f. Dividends paid during 2017: Preferred $40; Common $120.

a. Compute basic and diluted earnings per share for 2017. Carry all answers to three decimal places.

Basic EPS:

Diluted EPS:

b. Find diluted earnings per share for 2017, now assuming that the convertible debt was issued on December 01, 2017. All other facts remain unchanged.

Diluted EPS:

I have the answer for part A is Basic EPS = 2.230, Diluted EPS = 1.985 and the answer for part B is Diluted EPS = 2.207 but I don't know how to calculate them.

I need help with the calculation for each, show the calculation and list step by step (where you get the number, what is that number, and how you calculate to get that number), and list specifically as much as possible.

Please don't copy the answer from the other post and put it here. I did check all the answers from the other post but It wasn't correct or not specific. Thank you!