4. On December 31, 2021, AVS Company had 100,000 shares of common stock outstanding and 30,000 shares of 7%,$100par, cumulative (non-convertible) preferred stock outstanding. On February 28,2022 , AVS purchased 24,000 shares of common stock on the open market as treasury stock paying $45 per share. AVS sold 6,000 of the treasury shares on September 30 , 2022 , for $47 per share. Net income for 2022 was $540,000 and the income tax rate is 40%. Five thousand 6% bonds were issued at par on January 1, 2022. Each $1,000 bond is convertible into 125 shares of common stock. None of the bonds had been converted by December 31, 2022. 1) Compute basic earnings per share (rounded to 2 decimal places) for AVS Company for 2022. Show your computations. 2) Compute diluted earnings per share (rounded to 2 decimal places) for AVS Company for 2022. Show your computations