What are basic and diluted eps

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Question - Terrell Foods reported $880,000 in net income and its weighted average shares outstanding for the year is 200,000 shares. In prior years it sold $1,000,000 of 8% long-term convertible bonds at par which are still outstanding. The bonds are convertible into 20,000 shares of common stock. The tax rate for all years is 40%. If Terrell has no other potentially dilutive securities and no preferred stock, and no conversions occur during the year, what are basic and diluted EPS?

Reference no: EM133170448

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