1. At December 31, 2017, Norris Company had 400,000 shares of common stock outstanding. Norris sold 100,000 shares on October 1, 2018. Net income for 2018 was $2,565,000; the income tax rate was 30%. In addition, Norris had the following debt and equity securities on its books at December 31, 2017. (a) 20,000 shares of $100 par, 10% cumulative preferred stock. (b) 30,000 shares of 8% convertible cumulative preferred stock, par $100. Each share of preferred stock is convertible into 2 shares of common stock. (c) $2,000,000 face value of 8% bonds. (d) $3,000,000 face value of 6% convertible bonds. Each $1,000 bond is convertible into 20 shares of common stock. Also, options to purchase 10,000 shares of common stock were issued on April 1, 2017. Exercise price is $30 per share; market value at the date of the option was $29; average market value for 2018 was $40. INSTRUCTIONS: Compute basic and diluted EPS for the year ended December 31, 2018.