The following information was taken from the books and records of Connor Ball, Inc.: 1. Net income $1,250,000 2. Capital structure: a. Convertible 8.75% bonds. Each of the 300,$1,000 bonds is convertible into 500 shares of common stock for the next 10 years. $300,000 b. $10 par common stock, 200,000 shares issued and outstandine during the entire year. $2,000,000 3. Other information: a. Bonds converted during the year b. Income tax rate None c. Convertible debt was outstanding the entire year Instructions 1) Compute basic and diluted earnings per share. 2) Explain in your own words the concept of dilution and anti-dilution with respect to the disclosure of earnings per share on the income statement