$1,200,000 $2,000,000 Information pertaining to Prancer Company for 2019: Net income for the year 8% convertible bonds issued at par ($1,000 per bond). Each is convertible into 40 shares of common stock. 6% convertible, cumulative preferred stock, $100 par value. Each share is convertible into 3 shares of common stock. Common stock, $10 par value Common stock options (granted in a prior year) to purchase 50,000 Shares of common stock at $20 per share Tax rate Average market price of common stock Required: (a) Compute basic earnings per share for 2019. (b) Compute diluted earnings per share for 2019. $3,000,000 $6,000,000 $500,000 40% $25 per share