Red Lake EPS The controller of Red Lake Corp requested help in determining income, basic earnings per share, and diluted earnings per share for presentation in the ocmpany's income statement for the year ended September 30, 2014. As currently calculated, Red Lake's net income in $540,000 for fiscal year 2013-2014. Your working papers disclose the following opening balances and transactions in the company's capital stock accounts during the year Common stock (at October 1, 2013, stated value $10, authorized 300,000 shs, effective 12/1/2013 stated value $5, authorized 600,000 shs.) Balance 10/1/2013, issued and outstanding 12/1/2013 Two for one stock split, issued 12/1/2013 issued at $39 per share 60,000 shares 60,000 shares 280,000 shares 2. Treasury stock, common: 3/1/2014 Purchased at $38 4/1/2014 Sold at $40 40,000 shares 40,000 shares 3. Non-compensatory stock purchase warrants, Series A (initially, each warrant was exchangeable with $60 for 1 common share; effect 12/1/2013 each warrant became exchangeable for 2 common shares at $30 per share) 10/1/2013 Issued warrants at $6 each 4. Non-compensatory stock purchase warrants, Series B (each warrant is exchangeable with $40 for 1 common share 1/1/2014 Issued warrants at $10 each 5, First Mortgage bonds, 5 1/2 % due 2023 (nonconverible; priced to yield 5% when issued) 10/1/2013 authorized, issued, & outstanding 25,000 warrants 20,000 warrants $1,400,000 6, convertible debentures, 7% due 2030 (initially, each $1,000 bond was converriblee at any time until maturity into 20 common shares effective December 1, 2013, the conversion rate became 40 shares for each bone 10/1/2013 authorized and issued at par value $2,400,000o Here are the average market prices for Red Lake Securities during 2013-2014: avg for YE 9/30/14 37.50 (adjusted for stock split) common stock First mortgage bonds Convertible Debentures Series A warrants Series B warrants 87.00 115.00 15.00 9.50 Required: Prepare a schedule computing: 1. Basic earnings per share (do this one) 2. Diluted earnings per share (give this one a whirl) tax rate is 30%