11. Earnings Per Share Calculations, with one convertible Security: In 2018 XYZ Enterprises issued, at par, 300, $1,000, 10% bonds, each convertible into 100 shares of common stock. XYZ had revenues of $170,000 and expenses other than interest and taxes of $80,000 for 2018. (Assume that the tax rate is 40%.) Throughout 2018, 15,000 shares of common stock were outstanding; none of the bonds was converted or redeemed. XYZs Net Income is calculated as follows:

Revenues		$170,000
- Expenses		$80,000
- Bond Interest Expense		$30,000	(300 x 1,000 x 10%)
= Income before taxes:		$60,000
- Income Tax Expense (40%)		$20,000
= Net Income:		$40,000

A) Calculate the basic earnings per share for 2018:

B) Calculate the diluted earnings per share for 2018: