The following information pertains to Petit Four Inc. Net income $548,000 5% Convertible bonds issued at par $225,000 Weighted-average shares outstanding 188,000 Tax rate 25% Each $1,000 bond is convertible into 20 shares of common stock at the option of the bondholder. The bonds were outstanding all year. The company computes diluted EPS using the if-converted method. Calculate basic and diluted EPS for the year assuming that the convertible bonds were issued on November 1.

How to calculate the convertible bonds were issued on November 1.