These are two parts to the same question and answering both does not violate chegg policies. If you cannot answer both, please do not bother. Also, please show your work.

Company began the current year with 1,660,000 common shares outstanding. Company also reported $840,000 par value, 4% convertible bonds outstanding all year. The bonds were issued at par. The bonds can be converted to 840,000 shares of common stock.

Company made interest payments at the end of each quarter. The company is subject to a 30% effective tax rate and reported net income of $953,000 for the current year.

Requirement a. What are basic and diluted EPS (earnings per share) for Company?

Begin with the basic earnings per share. (Round the EPS to the nearest cent, $X.XX.)

Basic EPS for the current year is $

.

Calculate the diluted earnings per share for Company. (Round the EPS to the nearest cent, $X.XX.)

Diluted EPS for the current year is $

.

Requirement b. Assume the bonds were converted on October 1. What are basic and diluted EPS for Company?

Begin with the basic EPS assuming the bonds were converted on October 1. (Round the EPS to the nearest cent, $X.XX.)

Basic EPS for the current year assuming the bonds were converted on October 1 is $

.

Calculate the diluted EPS assuming the bonds were converted on October 1. (Round the EPS to the nearest cent, $X.XX.)

Diluted EPS for the current year assuming the bonds were converted on October 1 is $

.