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

Net income for the year 1800000

5% convertible bonds issued at par , with each bond convertible into 250,000 common shares 3,600,000

6% convertible, cumulative preferred shares, $100 par value, with each share convertible into 8 common shares 2,700,000

Common shares (800,000 shares outstanding) 8,000,000

contributed capital 3,000,000

retained earnings 4500000

tax rate for 2017 25%

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.