Select details of Kyd Objects Inc.'s capital structure as at January 1, 2018, follow. (Click the icon to view the details.) During the year, Kyd issued ordinary shares as follows. (Click the icon to view the ordinary shares issued.) Kyd was subject to a 35% tax rate. Its net income for the year ended December 31, 2018, totalled $4,000,000 (Click the icon to view the additional information.) Required a. Calculate Kyd's basic EPS for the year ended December 31, 2018. b. Prepare a schedule that sets out the income effect, share effect, and incremental EPS for each security that is convertible into ordinary shares. Rank the potential ordinary shares by their dilutiveness c. Calculate Kyd's diluted EPS for the year ended December 31, 2018. Requirement a. Calculate Kyd's basic EPS for the year ended December 31, 2018. Begin by calculating Kyd's weighted average number of ordinary shares outstanding in 2018. (Abbreviation used: WASO = Weighted average number of ordinary shares outstanding. Complete all answer boxes. Do not round until your final answers. Then round the contribution to WASO amounts to the nearest whole number.) Opening balance of ordinary shares outstanding Fraction Contribution Details Share adjustment factor Period (2018) of year to WASO Jan. 1 - Feb. 28 Mar. 1 - Sep 30 Oct. 1 - Nov. 30 Dec. 1 - Dec. 31 Weighted average number of ordinary shares outstanding Ordinary Shares Issued . 400,000 ordinary shares issued and outstanding. . 70,000 cumulative preferred shares "A" that are each entitled to dividends of $7.00 per annum . 80,000, $80 non-cumulative shares "B" with a stated dividend rate of 7% per annum. At the option of the holder, each preferred share can be converted into five ordinary shares on December 31, 2023. . Bonds A$4,000,000, 10%, semi-annual bonds maturing December 31, 2022 . Bonds B$9,000,000, 15%, semi-annual bonds maturing June 30, 2028. At the option of the holder, each $1,000 bond can be converted into seven ordinary shares at any time between January 1, 2023, and December 31, 2023. . Bonds C$2,000,000, 7%, semi-annual bonds maturing December 31, 2023. At the option of the holder, each $1,000 bond can be converted into 12 ordinary shares. . Option A-grants the holder the right to purchase 8,000 ordinary shares at any time before December 31, 2021, for $25 per share . Option B-grants the holder the right to purchase 25,000 ordinary shares for $16 per share. The option expires on December 31, 2019. March 1, 2018issued (sold) 100,000 ordinary shares. . October 1, 2018issued (sold) 70,000 ordinary shares. . December 1, 2018declared and distributed a 5% stock dividend. Additional information During the year, Kyd declared and paid the stated dividends on both classes of preferred shares as well as 5200,000 of dividends on its ordinary shares. The average market rate in 2018 for Kyd's ordinary shares was $19. The recorded exercise prices and number of shares under the stock options plans that can be acquired have already been adjusted for the stock dividend. Similarly, the recorded conversion factors for the convertible bonds and preferred shares have already been adjusted for the stock dividend. Assume that the effective rate of interest on the bonds equals the coupon rate. Select details of Kyd Objects Inc.'s capital structure as at January 1, 2018, follow. (Click the icon to view the details.) During the year, Kyd issued ordinary shares as follows. (Click the icon to view the ordinary shares issued.) Kyd was subject to a 35% tax rate. Its net income for the year ended December 31, 2018, totalled $4,000,000 (Click the icon to view the additional information.) Required a. Calculate Kyd's basic EPS for the year ended December 31, 2018. b. Prepare a schedule that sets out the income effect, share effect, and incremental EPS for each security that is convertible into ordinary shares. Rank the potential ordinary shares by their dilutiveness c. Calculate Kyd's diluted EPS for the year ended December 31, 2018. Requirement a. Calculate Kyd's basic EPS for the year ended December 31, 2018. Begin by calculating Kyd's weighted average number of ordinary shares outstanding in 2018. (Abbreviation used: WASO = Weighted average number of ordinary shares outstanding. Complete all answer boxes. Do not round until your final answers. Then round the contribution to WASO amounts to the nearest whole number.) Opening balance of ordinary shares outstanding Fraction Contribution Details Share adjustment factor Period (2018) of year to WASO Jan. 1 - Feb. 28 Mar. 1 - Sep 30 Oct. 1 - Nov. 30 Dec. 1 - Dec. 31 Weighted average number of ordinary shares outstanding Ordinary Shares Issued . 400,000 ordinary shares issued and outstanding. . 70,000 cumulative preferred shares "A" that are each entitled to dividends of $7.00 per annum . 80,000, $80 non-cumulative shares "B" with a stated dividend rate of 7% per annum. At the option of the holder, each preferred share can be converted into five ordinary shares on December 31, 2023. . Bonds A$4,000,000, 10%, semi-annual bonds maturing December 31, 2022 . Bonds B$9,000,000, 15%, semi-annual bonds maturing June 30, 2028. At the option of the holder, each $1,000 bond can be converted into seven ordinary shares at any time between January 1, 2023, and December 31, 2023. . Bonds C$2,000,000, 7%, semi-annual bonds maturing December 31, 2023. At the option of the holder, each $1,000 bond can be converted into 12 ordinary shares. . Option A-grants the holder the right to purchase 8,000 ordinary shares at any time before December 31, 2021, for $25 per share . Option B-grants the holder the right to purchase 25,000 ordinary shares for $16 per share. The option expires on December 31, 2019. March 1, 2018issued (sold) 100,000 ordinary shares. . October 1, 2018issued (sold) 70,000 ordinary shares. . December 1, 2018declared and distributed a 5% stock dividend. Additional information During the year, Kyd declared and paid the stated dividends on both classes of preferred shares as well as 5200,000 of dividends on its ordinary shares. The average market rate in 2018 for Kyd's ordinary shares was $19. The recorded exercise prices and number of shares under the stock options plans that can be acquired have already been adjusted for the stock dividend. Similarly, the recorded conversion factors for the convertible bonds and preferred shares have already been adjusted for the stock dividend. Assume that the effective rate of interest on the bonds equals the coupon rate