1. "The net income of Charles Company for the year ended December 31, 2002 was $100,000. The following additional information is available about the Company: - The weighted average number of shares outstanding during the year was 19,000. - During the year 1,000 shares of $100 par, 5% convertible preferred stock were outstanding. Each preferred stock is convertible into one share of common stock. - During the year, 100 bonds each of $1,000 face value were outstanding. The bonds were issued at par, pay 12% interest per year, and are convertible into 20 shares of common stock. - There were 5,000 options outstanding, with an option price of $20 each. The average market price for the period was $25. Calculate the basic and diluted earnings per share, assuming that the tax rate for the company is 30%."