RECOMMENDED!!Computation of EPS – Woolery, Inc. had 50,000 shares of common stock outstanding at January 1, 2006.

  

Computation of EPSWoolery, Inc. had 50,000 shares of common stock outstanding
at January 1, 2006.On March 31, 2006, an additional 12,000 common shares were
sold for cash.Woolery also had $4,000,000 of 6% convertible bonds
outstanding throughout the year. The bonds are convertible into 40,000 shares
of common stock.Net income for the year was $350,000. The tax rate is 35%.
Required: Compute basic earnings per share and diluted
earnings per share for the year ended December 31, 2006.

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