3.In 2020 Our Company had Net Income of $550,000.On 1/1/20, there were 100,000 shares of common stock outstanding.On 4/1/20, we issued 36,000 shares of common stock.On 6/1/20, we issued 24,000 shares of $100 par value, 6% cumulative preferred stock.This preferred stock is convertible into 48,000 shares of common stock.On 9/1/20, we issued $6,000,000 of 4% bonds at par.These bonds are convertible into 48,000 shares of common stock.The marginal tax rate is 25%.In addition, there are 90,000 options outstanding at 12/31/20.Each option entitles the holder to exchange it for 1 share of common stock at an exercise price of $20 per share.The average market price for common stock for 2020 was $50.

Required:Answer:

How much is Basic Earnings Per Share?

How much is Diluted Earnings Per Share?