Atlas, Inc., has the following capital structure at January 1, 2008.

During 2008, Atlas had the following stock transactions:
May 1 Issued 50,000 shares of common stock for $30 per share.
Aug. 1 Purchased 100,000 shares of treasury stock at $35 per share.
Oct. 1 Converted $2,000,000 of bonds.
Net income for 2008 was $950,000. The income tax rate was 30%. Compute basic and diluted EPS for Atlas for2008.

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Outstanding Common stock, $10 par.... 800,000 shares 1% stated interest rate convertible bonds issued at par; each $1,000 bond is convertible into 80 shares of common stock $5,000,000