Zoom-It Co. reported 600,000 common shares, 60,000 convertible preferred shares, and $3,000,000 of 8% convertible bonds outstanding during 2016. The preferred shares are convertible into 90,000 common shares. During 2017, Zoom-It declared dividends of $1.20 per share on the common shares and $3.00 per share on the preferred shares. Each $1,000 bond is convertible into 35 common shares. The net income for 2017 was $1,800,000 and the income tax rate was 30%.

[15] Basic earnings per share for 2017 is (rounded to the nearest penny)

Select one:

a.$2.60

b.$2.70

c.$2.79

d.$3.00

e.Basic EPS cannot be determined since the weighted average number of shares is not given.

Diluted earnings per share for 2017 is (rounded to the nearest penny)

Select one:

a.$2.98

b.$2.54

c.$2.48

d.$2.57

e.Diluted EPS cannot be determined since the weighted average number of shares is not given.