Jones Corporation's capital structure follows.

During 2020, Jones declared and paid dividends of \(\$ 3.00\) per share on its preferred stock. The preferred shares are convertible into 20,000 shares of common stock. The \(8 \%\) bonds are convertible into 30,000 shares of common stock. Net income for 2020 is \(\$ 850,000\). Assume that the income tax rate is \(25 \%\).

Required

a. Compute basic EPS for 2020 .

b. Compute diluted EPS for 2020.

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December 31 Outstanding shares of stock Common stock, outstanding shares.. Convertible preferred stock, outstanding shares 8% Convertible bonds 2020 110,000 10,000 $1,000,000