We present Horan Incorporated's current-year partial income statement. Horan is subject to a 40% income tax rate. Click the icon to view the partial income statement for the current year.) A partial balance sheet for the current year follows. :: (Click the icon to view the partial balance sheet for the current year.) Read the requirements Requirement a. Based on the information provided, compute basic and diluted earnings per share (EPS) for the current year. Include all computations related to the application of antidilution sequencing, if needed. Begin by calculating the incremental income per share on each of the potentially dilutive securities and ranking their order of entry into the EPS computation. (Complete all answer boxes. Enter a "0" for any zero balances. Round the increase in income amounts to the nearest dollar. Round the incremental income per share amounts to the nearest cent, $X.XX.) Increase in the Rank Order of - X Partial balance sheet Potentially Dilutive Security Partial income statement Incremental Income per Share Increase in Income Number of Common Shares Entry into the EPS Computation Current Year Partial Income Statement Current Year 5% convertible debt Convertible preferred stock Employee options $ $8,123,000 Income from Continuing Operations Discontinued operations-Income, net of tax 1,251,090 447,960 Partial Balance Sheet Liabilities: 5% Convertible Debt - Issued at $1,000 par(1) Stockholders' Equity: Common Stock, no par (1,033,000 shares issued and outstanding)(2) $3 Convertible Preferred Stock, $100 par value (42,400 shares issued and outstanding) Additional Paid-in Capital - Stock Options (employee options to acquire 356,475 shares)(4) $5,260,000 1,699,050 Net Income 4,240,000 Requirements (1,862,500) Print Done a. Based on the information provided, compute basic and diluted earnings per share for the current year. Include all computations related to the application of antidilution sequencing if needed. b. Prepare the income statement disclosures required beginning with income from continuing operations. Footnotes to the Balance Sheet: (1) Each bond is convertible into 84 shares of common stock. The bonds are outstanding all year. (2) The number of shares issued and outstanding did not change throughout the year. (3) Each preferred share is convertible into nine shares of common stock. The firm declared preferred dividends. The preferred stock was outstanding all year. (4) The options are exercisable at $10 per share, and the average market price of the company's stock for the year is $35. The options were outstanding all year. Print Done Print Done We present Horan Incorporated's current-year partial income statement. Horan is subject to a 40% income tax rate. Click the icon to view the partial income statement for the current year.) A partial balance sheet for the current year follows. :: (Click the icon to view the partial balance sheet for the current year.) Read the requirements Requirement a. Based on the information provided, compute basic and diluted earnings per share (EPS) for the current year. Include all computations related to the application of antidilution sequencing, if needed. Begin by calculating the incremental income per share on each of the potentially dilutive securities and ranking their order of entry into the EPS computation. (Complete all answer boxes. Enter a "0" for any zero balances. Round the increase in income amounts to the nearest dollar. Round the incremental income per share amounts to the nearest cent, $X.XX.) Increase in the Rank Order of - X Partial balance sheet Potentially Dilutive Security Partial income statement Incremental Income per Share Increase in Income Number of Common Shares Entry into the EPS Computation Current Year Partial Income Statement Current Year 5% convertible debt Convertible preferred stock Employee options $ $8,123,000 Income from Continuing Operations Discontinued operations-Income, net of tax 1,251,090 447,960 Partial Balance Sheet Liabilities: 5% Convertible Debt - Issued at $1,000 par(1) Stockholders' Equity: Common Stock, no par (1,033,000 shares issued and outstanding)(2) $3 Convertible Preferred Stock, $100 par value (42,400 shares issued and outstanding) Additional Paid-in Capital - Stock Options (employee options to acquire 356,475 shares)(4) $5,260,000 1,699,050 Net Income 4,240,000 Requirements (1,862,500) Print Done a. Based on the information provided, compute basic and diluted earnings per share for the current year. Include all computations related to the application of antidilution sequencing if needed. b. Prepare the income statement disclosures required beginning with income from continuing operations. Footnotes to the Balance Sheet: (1) Each bond is convertible into 84 shares of common stock. The bonds are outstanding all year. (2) The number of shares issued and outstanding did not change throughout the year. (3) Each preferred share is convertible into nine shares of common stock. The firm declared preferred dividends. The preferred stock was outstanding all year. (4) The options are exercisable at $10 per share, and the average market price of the company's stock for the year is $35. The options were outstanding all year. Print Done Print Done