Problem #4: Basic and Diluted EPS Calculations involving only a single debt security) - (8 points) In 2012 the Gaylord Enterprises issued, at par, 150, $1,000, 10% bonds, each convertible into 100 shares of common stock. Gaylord had revenues of $40,000 and expenses other than interest and taxes of $18,000 for 2013 (Assume that the tax rate is 40%.) Throughout 2013. 4,000 shares of common stock were outstanding: none of the bonds were converted or redeemed. Gaylord's Net Income is calculated as follows an ST a) Calculate the basic earnings per share for 2013: b) Calculate the diluted earnings per share for 2013: Problem #5: Depreciation Change (8 points) On January 1, 2010, East Indies Company purchased a building that has an estimated useful life of 20-year, salvage value of $140,000 and a cost of $1,600,000. The building has been depreciated under the double-declining. balance method in 2010-2011. In 2012, the company decided to switch to the straight-line method of depreciation A] Prepare a schedule showing the depreciation taken to date (i.e. up to December 31, 2011) Prepare the journal entry necessary to record the depreciation Je thing in 2012 TUT