Net income for 2013:360000

2 Bonds payable: On January 12013, the company had issued 10 , $200,000 bonds at 110 .. T. Each 1,000 bond currently convertible 22 shares of common stock .

3. Bonds payable: On December 312011, the company had issued 5540,000 of 5.8 % bonds at par. Each 1,000 bond is currently convertible into 116 shares of common stock To date, no bonds have been converted

4. Preferred stock On July 3, 2012 , the company had issued 3,800 shares of %7.5 , $100 par, preferred stock at $108 per shareEach share of preferred stock is currently convertible into 2.45 shares of common stock To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid.

5. Common stockAt the beginning of 2013, 25.000 shares were outstanding On August 3, 7000 additional shares were Issued. During Septembera 20% stock dividend was declared and Issued. On November 30, 2,000 shares were reacquired as treasury stock

6. Compensatory share options Options to acquire common stock at a price of 33$ per share were outstanding during all of 2013. Currently4,000 shares may be acquired. To date, no options have been exercised. The urrecognized compensation cost (net of tax) related to these options is 5 per share.

7 Miscellaneous: Stock market prices on common stock averaged 41$ per share during 2013, and the 2013 ending stock market price was 40$ per share. The corporate income tax rate is 30%

Required:

1 Compute the basic eamings per share Show supporting calculations.

2 Compute the diluted earnings per share Show supporting calculations

3. Indicate which earnings per share figure() Frost would report on its 2013 income statement