The following is a partial balance sheet for Nevermore Corporation for the year ended December 31, 2011:

9 percent convertible Bonds (issued at par)

$1,800,000

Common stock, 180,000 shares issued and outstanding, $50 par

9,000,000

a.

Each $1,000 convertible bond can be converted into 80 shares of common stock.

b.

On September 1, 2011, one-third of the convertible debt was converted into common stock.

c.

Nevermore reported net income of $1,550,000 in 2011. The tax rate was 30 percent.

d.

No other stock transactions took place during 2011.

1.

Compute basic earnings per share for 2011.

2.

Compute diluted earnings per share for 2011.

could you find BEPS and Diluted EPS?

And, explain how to get them in steps.

Thank you,