Winona Company began 2016 with 10,000 shares of $10 par common stock and 2,000 shares of 9.4%, $100 par, convertible preferred stock outstanding. On April 2 and June 1, respectively, the company issued 2,000 and 6,000 additional shares of common stock. On November 16, Winona declared a 2-for-1 stock split. The preferred stock was issued in 2015. Each share of preferred stock is currently convertible into 4 shares of common stock. To date, no preferred stock has been converted. Current dividends have been paid on both preferred and common stock. Net income after taxes for 2016 totaled $109,800. The company is subject to a 30% income tax rate. The common stock sold at an average market price of $24 per share during 2016.

Required:

1. Complete the schedule below to compute:

basic earnings per share

diluted earnings per share

Round your EPS answers to two decimal places.

2. What amounts would Winona report the earnings per share on its 2016 income statement? Round your answers to two decimal places.

Basic earnings per share	$
Diluted earnings per share	$

3. Assume Winona uses IFRS. Discuss what Winona would do differently for computing earnings per share, and then repeat Requirement 1 under IFRS. Round your EPS answers to two decimal places.

Required:

1. Complete the schedule below to compute:

basic earnings per share

diluted earnings per share

Round your EPS answers to two decimal places.