q 1. Auerbach Inc. issued 6% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $275 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 8%.

Assuming that Auerbach issued the bonds for $237,627,473, what interest expense would it recognize in its 2021 income statement?

q2 . Rudyard Corporation had 210,000 shares of common stock and 21,000 shares of 6%, $100 par convertible preferred stock outstanding during the year. Net income for the year was $510,000 and dividends were paid to both common and preferred shareholders. Rudyard's effective tax rate is 25%.

What is Rudyard's basic EPS?