Below we present Ithaca Incorporated's current-year partial income statement. Ithaca is subject to a 30% income tax rate.

Partial Income Statement	Current Year
Income from continuing operations	$1,250,390
Discontinued operations-income, net of tax	$447,660
Net Income	$1,698,050

A partial balance sheet for the current year follows.

Partial Balance Sheet	Current Year
Liabilities:	$8,115,000
9% Convertible Debt - issued at $1,000 par value (1)
Stockholders Equity:
Common Stock, no par (1,033,000 shares issued and outstanding) (2)	$5,220,000
$3 Convertible Preferred Stock, $100 par value (43,000 shares issued and outstanding) (3)	4,300,000
Deferred compensation (employee options to acquire 423,990 shares)	-1,882,500

Footnotes to the Balance Sheet:

1.) Each bond is convertible into 89 shares of common stock. The bonds are outstanding all year.

2.) The number of shares issued and outstanding did not change throughout the year.

3.) Each preferred share is convertible into 7 shares of common stock. The firm declared preferred dividends. Ther preferred stock was outstanding all year.

4.) The options are exercisable at $10 per share and the average market price of the company's stock for the year is $42. The options were outstanding all year.

Requirements:

a.)	Based on the information provided, compute basic and diluted earnings per share for the current year. Include all computations related to the application of antidilution sequencing, if needed.
b.)	Prepare the income statement disclosures required beginning with income from continuing operations.