Can someone please walk through this problem. My professor has posted a video on this problem but I'm still not understanding it and how they walked through this problem confused me even more. Thank you.

Comprehensive: EPS The Frost Company has accumulated the following information relevant to its 2010 earnings per share.

1. Net income for 2010, $150,500.

2. Bonds payable: On January 1, 2020 the company had issued 10%, $200,000 bonds at 110. The premium is being amortized in the amount of $1,000 per year. Each $1,000 bond is currently convertible into 22 shares of common stock. To date no bonds have been converted.

3. Bond payable: On December 31, 2008, the company had issued $540,000 of 5.8% bonds at par. Each $1,000 bond is currently convertible into 11.6 shares of common stock. To date no bonds have been converted.

4. Preferred stock: On July 3, 2009, the company had issued 3,800 shares of 7.5%, $100 par, preferred stock at $108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and o additional shares of preferred stock have been issued. The current dividends have been paid.

5. Common stock: At the beginnin of 2010, 25,000 shares were outstianding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared an issued. On November 30, 2,000 shares were reacquired as treasury stock.

6. Compensatory share options: Options to acquire common stock at a price of $33 per share were outstanding during all of 2010. Currently 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compensation cost (net of tax) related to these options is $5 per share.

7. Misellaneous: Stock market prices on common stock averaged $41 per share during 2010, and the 2010 ending stock market prices was $40 per share. The corporate income tax rate is 30%.

Required

1. Compute the basic earnings per share. Show supporting calculations.

2. Compute the diluted earnings per share. Show supporting calculations.

3. Indicate which earings per share figure(s) Frost Company would report on its 2010 income statement.