-8 (L05) (Computation of Basic and Diluted EPS) The information below pertains to Barkley Company for 2018. $1,200,000 2,000,000 Net income for the year 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock Common stock, $10 par value Tax rate for 2018 Average market price of common stock 4,000,000 6,000,000 40% $25 per share There were no cha were no changes during 2018 in the number of common shares, preferred shares, or convertible bonds outstanding. There sury stock. The company also has common stock options (granted in a prior year) to purchase 75,000 shares of common stock at $20 per share. Instructions Compute basic earnings per share for 2018. (b) Compute diluted earnings per share for 2018