at December 31, 2016, Talbot corporation had 90,000 shares of common stock and 20,000 shares of convertible preferred stock outstanding in addition to 9% convertible bonds payable in the face amount of 2,000,000. During 2016, Talbot paid dividends of $2.50 per share on the preferred stock. The preferred stock is convertible into 30,000 shares of common stock. New income for 2016 was $970,000. Assume an income tax rate of 30%. How much is the diluted earnings per share for the year ended December 31, 2016?