P16-4 (EPS with Complex Capital Structure) Amy Dyken, controller at Fitzgerald Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Fitzgerald's financial statements. Selected financial information for the fiscal year ended June 30, 2015, is shown below. FITZGERALD PHARMACEUTICAL INDUSTRIES SELECTED STATEMENT OF FINANCIAL POSITION INFORMATION JUNE 30, 2015 Equity Share capitalpreference, 6% cumulative, 50 par value, 100,000 shares authorized, 25,000 shares issued and outstanding 1,250,000 Share capitalordinary, 1 par, 10,000,000 shares authorized, 1,000,000 shares issued and outstanding 1,000,000 Share premiumordinary (includes any amounts for options and conversions) 4,000,000 Retained earnings 6,000,000 Total equity 12,250,000 Long-term debt Notes payable, 10% 1,000,000 Convertible bonds payable 5,000,000 10% bonds payable 6,000,000 Total long-term debt 12,000,000 The following transactions have also occurred at Fitzgerald. 1. Options were granted on July 1, 2014, to purchase 200,000 shares at 15 per share. Although no options were exercised during fiscal year 2015, the average price per ordinary share during fiscal year 2015 was 20 per share.