Using the formula provided

To solve the problem shown below, and to possibly earn a maximum credit, you must use the following formulas rst: $_A Net income formula = $1,100,000 + $5,000 X 3: 3315000 B Number of common shares outstanding on January 1, 2017 formula = 200,000 + 5,000 X 3: 615000 (34% Tax rate formula = 30% + 1% X 3: 0.93 D Number of common stodgshares each $1,000 bond converts into = 15 + 2 X 3: 51 Styx Corp had 3315000 net income in 2017. On January 1, 2017, there were 615000 shares of common stock outstanding. On April 1, 36,000 shares were issued and on September 1, Styx bought 42,000 shares of treasury stock. There are 25,000 options to buy common stock at $32 a share outstanding. The market price of the common stock averaged $40 during 2017. The tax rate is 93% During 2017, there were 30,000 shares of convertible preferred stock outstanding. The preferred stock is $100 par, pays $2.50 a year dividend, and is convertible into two shares of common stock. Styx issued $3,000,000 of 7% convertible bonds at face value during 2016. Each $1,000 bond is convertible into 5_1[shares of common stock. Compute diluted earnings per share for 2017. Complete the schedule below and show your calculations. Adjusted Shares Adjustment Adjusted EPS Security Net income Adjustment net income shares