Required:

a) Compute basic EPS for the year ended 12/31/2021 (label your work, please):

b) Bond payable effect (include test for dilution): Effect Dilutive? Yes/No (Please circle your answer and show supporting work)

c) P/S effect (include test for dilution): Effect Dilutive? Yes/No (Please circle your answer and show supporting work)

d) Stock option effect (include test for dilution): Effect Dilutive? Yes/No (Please circle your answer and show supporting work)

Mantonio, Inc., a calendar yr firm, had the following capital structure at 12/31/2021: Item Detail Value Bonds Payable 5%, issued 1/2/2017;each $1000 $1,000,000 bond convertible to 3 shares C/S Common Stock $5 par,425,000 shares issued & Common Stock: outstanding $2,125,000 Additional Paid in Capital: $1,480,000 Preferred Stock 4% $50 par,cumulative, 35,000 Preferred Stock: shares outstanding issued in $1,750,000 2017; each share convertible to | Additional Paid in Capital: 3 shares of common stock $70,000 Stock Options Option Price: $12 50,000 options outstanding Retained $2,550,000 Earnings Note: The shares of common stock outstanding are consistent with the weighted average number of shares for the vear. Average tax rate: 20% Mantonio's net income for 2021 was $1,451,250. The average price of the common stock for the year was $16 per share. e) Please compute Dilutive EPS regardless of Anti-dilutive Effects on the schedule below for 2021. Please be sure to list the effects in order that they are applied while computing Dilutive EPS. Item Dilutive Effect Applied? New Dilutive EPS Dilutive EPS Reported on Financial Statements