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The following information was taken from the books and records of Simonic, Inc.: 1. Net income $ 280,000 2. Capital structure: a. Convertible 6% bonds.

The following information was taken from the books and records of Simonic, Inc.: 1. Net income $ 280,000 2. Capital structure: a. Convertible 6% bonds. Each of the 300, $1,000 bonds is convertible into 50 shares of common stock . 300,000 b. $10 par common stock, 200,000 shares issued and outstanding during the entire year. 2,000,000 c. Stock options outstanding to buy 16,000 shares of common stock at $20 per share. 3. Other information: a. Bonds converted during the year None b. Income tax rate 30% c. Convertible debt was outstanding the entire year d. Average market price per share of common stock during the year $32 e. Options were outstanding the entire year f. Options exercised during the year None Instructions Compute basic and diluted earnings per share.

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