3. Sundance Inc. had Net Income of $500,000 2020 and 100,000 shares of weighted average common stock shares outstanding all year. Sundance also had the following information: 1. Sundance had 1,000 shares of Preferred Stock. The stock is $100 par, 10%, cumulative. The stock is convertible into 3 shares of common stock. No dividend was declared this year. 2. On July 1, 2020 Sundance issued 20,000 options to buy common stock at $8 a share outstanding. The market price of common stock averaged $10 during the year.. 3. Sundance has $1,000,000 of 8% convertible bonds. Each $1,000 bond is convertible into 20 shares of common stock. The unamortized premium on the bonds on January 1 was $76,000 and the effective interest rate for the bonds is 7%. The bonds pay interest annually and the company uses the effective interest method. Sundance's tax rate is 30% A. Compute basic earnings per share. B. Compute fully diluted earnings per share using the incremental approach. Show your computations to determine the incremental EPS and the order to dilute the securities and to prove that each convertible security is dilutive. Clearly label your solution. Use extra sheets as necessary)