Data for Schrute Powder Company at the end of 2014 follow. All bonds are convertible as indicated and were issued at their face amounts.

Instructions:
1. Compute basic and diluted EPS for 2014, assuming that no additional shares of common stock were issued during the year.
2. Compute basic and diluted EPS, assuming that the 10-year bonds were converted on July 1, 2014, and that net income for the year was $1,326,700 (reflects reduction in interest due to bond conversion).

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Amount Date Issued Conversion Terms 10-year, 6%% convertible bonds 20year, 7% convertible bonds 25-year, 10%% convertible bonds $ 600,000 Jan. 1, 2008 110 shares of common for each $1,000 bond 45 shares of common for each $1,000 bond 36 shares of common for each $1,000 bond 1,200,000 Jan. 1, 2009 900,000 June 30, 2013 Additional information: 880,000 Common shares outstanding at December 31, 2013 Net income for 2014 $1,315,000