Use the information given below to answer Questions [15] and [16].

Zoom-It Co. reported 600,000 common shares, 60,000 convertible preferred shares, and $3,000,000 of 8% convertible bonds outstanding during 2016. The preferred shares are convertible into 90,000 common shares. During 2017, Zoom-It declared dividends of $1.20 per share on the common shares and $3.00 per share on the preferred shares. Each $1,000 bond is convertible into 35 common shares. The net income for 2017 was $1,800,000 and the income tax rate was 30%.

) Basic earnings per share for 2017 is (rounded to the nearest penny)

Select one:

a.

$2.60

b.

$2.70

c.

$2.79

d.

$3.00

e.

Basic EPS cannot be determined since the weighted average number of shares is not given.

Clear my choice

[] Diluted earnings per share for 2017 is (rounded to the nearest penny)

Select one:

a.

$2.98

b.

$2.54

c.

$2.48

d.

$2.57

e.

Diluted EPS cannot be determined since the weighted average number of shares is not given.