(10 points) On December 31, 2019Doritos (which is now owned by CoCo Montrese) had outstanding 500,000 shares of common stock and 20,000 shares of 8% cumulative preferred stock (par $50). On March 31, 2020, Doritos issued an additional 45,000 shares of common stock. A 20% stock dividend was declared and distributed on July 1, 2020. On August 31st, 2020,15,000 shares were repurchased as treasury stock. The cumulative preferred stock was also convertible. Each preferred share could be converted into 4 shares of common stock (already adjusted for the stock dividend) at anytime at the discretion of the preferred shareholder. At the end of the year, there were fully vested incentive stock options outstanding for 200,000 shares of common stock (already adjusted for the stock dividend). The exercise price for the options was $15, and the fair value of the options at the grant date was $3. Average fair value of the options over the year was $6.75. The market price of the common stock during the year had averaged $22. The options were fully vested at the start of the year, and none of the stock opti were exercised over the course of the year. Net income was $520,000. The tax rate for the year was 20%. Required: What is Basic EPS, and what is Diluted EPS? Show work for partial credit