3. (25 points) Strickland Corporation eamed net income of $300,000 (after taxes at a rate of 40%) in 2017. It had 100,000 shares of common stock outstanding all year, and 50.000 shares of preferred stock non-convertible, non cumulative. Dividends of $20,000 were declared and paid on the preferred The company had outstanding stock options for 5,000 shares of common stock at an exercise price of $20. The average market price during the year was $40. The company also had $400,000 of 10% convertible bonds (sold at par value) convertible into 16,000 shares of common stock Compute basic earnings per share. Identify whether the BONDS are dilutive or anti dilutive, showing computations to support your answer. Compute diluted earnings per share