Data for Schrute Powder Company at the end of 2016 follow. All bonds are convertible as indicated and were issued at their face amounts.

Instructions:
1. Compute basic and diluted EPS for 2016, 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, 2016, and that net income for the year was $1,326,700 (reflects reduction in interest due to bond conversion).

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Description of Bonds 10-year, 61,% convertible bonds 20-year, 7% convertible bonds 25-year, 10у% convertible bonds Additional information: Amount S 600,000 1,200,000 Date Issued Jan. 1, 2010 Jan. 1, 2011 June Conversion Terms 1 10 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 , 2011 900,000 30, 2015 Common shares outstanding at December 31,2015, Net income for 2016. 880000 4096