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Question - Please explain - Computing Basic and Diluted Earnings per Share - Zeller Corporation began 2015 with 124,000 shares of common stock and 16,000 shares of convertible preferred stock outstanding. On March 1 an additional 10,000 shares of common stock were issued. On August 1, another 16,000 shares of common stock were issued. On November 1, 6,000 shares of common stock were acquired for the treasury. The preferred stock has a $2 per-share dividend rate, and each share may be converted into one share of common stock. Zeller Corporation's 2015 net income is $501,000.
Required -
a. Compute basic earnings per share for 2015.
b. Compute diluted earnings per share for 2015.
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