The following information is available for Bobby’s Baubles Corp., which reports its financial results in accordance with IFRS:

Required:

a. Compute Bobby’s basic EPS for the year ended December 31, 2021. 

b. Prepare a schedule that sets out the income effect, share effect, and incremental EPS for each security that is convertible into ordinary shares. Rank the potential ordinary shares by their dilutiveness. 

c. Compute Bobby’s diluted EPS for the year ended December 31, 2021. 

d. Show the required presentation of the EPS data on the income statement.

Net income for 2021 Income tax rate during 2021 Liabilities and equity outstanding as at December 31, 2021 6% convertible bonds each $1,000 bond is convertible into eight ordinary shares 5% convertible bonds each $1,000 bond is convertible into six ordinary shares 4% cumulative preferred shares-each $100 preferred share is convertible into five ordinary shares Ordinary shares $500,000 35% $500,000 700,000 200,000 500,000