Assume the following information concerning Tulley Company for 2005: A. Net income: $200,000. B. Common stock, $5 par, 40,000 shares issued and outstanding as of January 1, 2005 C. Two stock transactions occurred during 2005. On March 1, 20,000 shares were issued for cash. On July 1, 24,000 shares were issued for cash. D. Tulley Company has issued 10 convertible bonds with a $1,000 face amount. Each bond is convertible into 100 shares of common stock at the present date and for the next 10 years. Tully's interest expense for 2005 was $700. No bonds were converted during the year. E. On April 1, 2005, stock options were issued to purchase 1,000 shares of common stock at $15 per share. None of the options were exercised during 2005. F. Warrants to purchase common stock, Series B: 800 warrants to purchase shares at $45 per share. It takes one warrant to buy one share of stock. As of December 31, no warrants had been exercised. G. Income tax rate: 40 percent. H. Average market price per share of common stock during the entire year was $30. Closing market price per share at year end was $25. Required: Determine basic and diluted earnings per share for 2005. Analyze: If there were preferred shares outstanding and preferred stock dividends had been declared for the year, how would basic EPS be affected