The Kindbird Corporation issued 10 year $5380000 par 7% callable convertible subordinated debentures on January 2 2017. The bonds have a par value of $1000 with interest payable annually. The current conversion ratio is 14:1 and in 2 years it will increase to 17:1. At the date of issue the bonds were sold at 99. Bond discount is amortized on a straight line basis. Kingbirds effective tax was 40%. Net income in 2017 was $9000000 and the company had 1980000 shares outstanding during the entire year.

a. compute both basic and diluted earnings per share.

basic earnings per share

diluted earnings per share