(20 Points) At January 1, 2021, Simmons Corporation had outstanding the following securities 700,000 common shares 40,000 shares of 6% cumulative convertible preferred shares, $100 par 6,000 shares of 14% cumulative convertible preferred shares, $50 par 7% convertible bonds, $8,000,000 face value The following additional information is available: On February 28, 2021, Simmons sold 84,000 shares of common stock On September 30, 2021, Simmons sold 72,000 shares of common stock Incentive stock options to purchase 200,000 shares of common stock at $15 per share were outstanding at the beginning and end of 2021. The average market price of Simmons' common stock was $20 during 2021. The 6% convertible preferred is convertible into 120,000 shares of common stock The 14% convertible preferred is convertible into 7,000 shares of common stock The 7% convertible bonds are convertible into 160,000 shares Simmons' net income for the year ended December 31, 2021 was $5,640,400. The effective income tax rate was 30%. Required: 1. Calculate basic earnings per common share for the year ended December 31, 2021. 2. In determining your basic earnings per common share in #1, what is the value of your denominator? 3. Calculate the diluted earnings per common share for the year ended December 31, 2021