Question - At December 31, 2009, the financial statements of Hollingsworth Industries included the following:
Net income for 2009
Bonds payable, 10%, convertible into 36 million shares of common stock
Common stock:
Shares outstanding on January 1
Treasury shares purchased for cash on September 1
Additional date:
The bonds payable were issued at par in 2007. The tax rate for 2009 was 40%
Required - Compute basic and diluted EPS for the year ended December 31, 2009.