Woolery,Inc. ,had 50,000 shares of common stock outstanding at January 1,2016.On March 31,2016,an additional 12,000 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 and diluted earnings per share (rounded to 2 decimal places)for the year ended December 31,2016.

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The Answer of Woolery,Inc. ,had 50,000 shares of common stock outstanding at January 1,2016.On March 31,2016,an additional 12,000 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 and diluted earnings per share (rounded to 2 decimal places)for the year ended December 31,2016.