Igor Corporation had 10,000 shares of common stock outstanding at the beginning of the year. On July 1, it issued 5,000 shares, and on September 1, it reacquired 600 shares as treasury stock.

Net income for the year was $31,000. Igor Corporation has compensatory share options for employees to purchase 4,000 common shares at $12 per share outstanding the entire year.

The average market price for the common stock during the year was $20 per share. Igor Corporation has 9% convertible preferred stock outstanding all year with a par value of $50,000.

The preferred shares are convertible into 4,500 shares of common stock. Igor Corporation has 9% convertible bonds outstanding with a face value of $70,000.

The bonds are convertible into 2,500 shares of common stock. Igor Corporation has a 30% tax rate.

Required:

Compute Igor's Basic EPS.

Compute Igor's Diluted EPS.

Prepare Igor's income statement starting with Net Income.