Colson Corp. had $750,000 net income in 2015. On January 1, 2015 there were 200,000 shares of

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Question:

Colson Corp. had $750,000 net income in 2015. On January 1, 2015 there were 200,000 shares of common stock outstanding. On April 1, 23,000 shares were issued and on September 1, Colson bought 29,400 shares of treasury stock. On Oct 1, Colson declared a 10% Stock Dividend. As of Jan 1st, there are 28,000 stock options outstanding.

The Option Exercise price was $40 per share and the market price of the common stock averaged $50 during 2015. The tax rate is 40%.

During 2015, there were 40,000 shares of convertible preferred stock outstanding. The preferred is $100 par, pays $3.50 a year dividend, and is convertible into three shares of common stock.

Colson issued $2,000,000 of 8% convertible bonds at face value during 2014. Each $1,000 bond is convertible into 30 shares of common stock.

Instructions

Compute Basic and Diluted earnings per share for 2015 in Good form, show all computations.