Bentley has the following information for 2018:

	Net income		$1,200,000
	8% convertible $1,000 bonds issued 1/1/15 for $2,140,472 yielding 7% with annual coupons Due 1/1/25 - Each bond converts to 50 shares of common stock		$2,000,000 face amount
	9% convertible, cumulative $100 par preferred stock -Each share converts to 3 shares of common stock		$3,000,000
	Common stock, $10 par		$5,000,000
	Common stock options (granted in 2016) to purchase 60,000 shares of common stock at $20 per share
	Tax rate		25%
	Average market price per share for common stock during the year		$26

1. Compute basic and diluted EPS for 2018 (to the nearest tenth of a cent).
2. Compute basic and diluted EPS for 2018 assuming the stock options were granted on March 1, 2018.
3. Compute basic and diluted EPS for 2018 assuming the stock options were granted on March 1, 2018 and the debt was issued on July 1, 2018 (dont forget to adjust net income).

Hint prepare an amortization schedule for the bonds before you do anything else.