Question $5$ chapter $20$ Green Stamping began the current year with $265,000$ common shares outstanding and issued an additional $240,000$ shares on September $1.$ The firm has $$11,900,000,2\mathrm{.}5\%$ convertible bonds outstanding for a full year $($i$.$e$.,$ $$297,500$ coupon interest per year$),$ which are convertible into $322,000$ shares of common stock. The firm issued the bonds at par and did not convert any during the current year. It also had $$1,240,000$ par value, $4\%$ nonconvertible, noncumulative preferred stock outstanding for the full year and declared dividends for the current year. The company is subject to a $30\%$ tax rate and net incomes is $$4,500,000.$ Assume that the $$4,500,000$ net income reported by Green Stamping includes a $$786,000$ loss from discontinued operations, net of tax.

Read the requirements.

Requirement a$.$ Based on this information, compute basic and diluted earnings per share $($EPS$)$ for the current year.

Begin with the basic earnings per share for income from continuing operations. $($Round the EPS to the nearest cent, $$x.xx.)$

Basic EPS from income from continuing operations for the current year $=$

Requirements

a$.$ Based on this information, compute basic and diluted earnings per share for the current year.

b$.$ Prepare the earnings per share disclosure on the income statement beginning with income from continuing operations.