Terrel l Foods reported $$950,000$ in net income and its weighted average shares outsta ndi ng$"$

"for the yea r is $200,000$ shares. I n prior yea rs it sold $$2,000,000$ of $8\%$ long$-$term bonds at pa r$"$

"which are sti l l outsta ndi ng$.$ The bonds are convertible into $50,000$ shares of common stock. The tax rate for a l l yea rs is $40\%.$ If Terrell has no other potentia l ly d i lut ive securities and no$"$

"preferred stock, what are basic an d di l uted EPS?"

a$.$ basic E PS $$4\mathrm{.}75$; diluted EPS $$4\mathrm{.}18$

b$.$ basic E PS $$5\mathrm{.}34$; diluted EPS $$4\mathrm{.}18$

c$.$ basic E PS $$4\mathrm{.}75$; diluted EPS $$3\mathrm{.}80$ d$.$ basic E PS $$5\mathrm{.}34$; diluted EPS $$3\mathrm{.}80$