The following data pertain to Lakeside Corporation at December 31, 2017:

During 2017, there were no changes in the number of common shares, preferred shares, or convertible bonds outstanding. There are no treasury shares held.

Instructions

1. Calculate basic EPS for 2017.
2. Calculate diluted EPS for 2017. Include all calculations including anti-dilutive tests.
3. Explain whether dual presentation of EPS (presentation of both basic and diluted EPS) is required for 2017.

$1,800,000 $3,600,000 Net income for the year 5% convertible bonds issued at par in a prior year, convertible into 250,000 common shares 6% convertible, cumulative, preferred shares, $100 stated value, issued in a prior year (each share is convertible into 8 common shares) Common shares, issued in prior years (800,000 outstanding) Contributed capital Retained earnings Tax rate for 2017 $2,700,000 $8,000,000 $3,000,000 $4,500,000 25% $1,800,000 $3,600,000 Net income for the year 5% convertible bonds issued at par in a prior year, convertible into 250,000 common shares 6% convertible, cumulative, preferred shares, $100 stated value, issued in a prior year (each share is convertible into 8 common shares) Common shares, issued in prior years (800,000 outstanding) Contributed capital Retained earnings Tax rate for 2017 $2,700,000 $8,000,000 $3,000,000 $4,500,000 25%