3. At December 31, 2017, Bob Company had 2,000,000 shares of common stock outstanding. On January 1, 2018, Bob issued 500,000 shares of preferred stock which were convertible into 1,000,000 shares of common stock. During 2018, Bob declared and paid $1,200,000 cash dividends on the common stock and $400,000 cash dividends on the preferred stock. Net income for the year ended December 31, 2018, was $6,000,000. Assume an income tax rate of 30%. Required: For the year ended December 31, 2018, compute: Basic earnings per share (Round to the nearest penny.) Diluted earnings per share (Round to the nearest penny.)