Blossom Inc. had net income for the fiscal year ended June 30, 2020, of $5,000,000. There were 500,000 common shares outstanding throughout 2020. The average market price of the common shares for the entire fiscal year was $80. Blossom's tax rate was 25% for 2020. Blossom had the following potential common shares outstanding during 2020: 1. Options to buy 100,000 common shares at $40 per share. 2. 100,000 convertible preferred shares entitled to a cumulative dividend of $10 per share. Each preferred share is convertible into 1.5 common shares. 3. 7% convertible bonds with a principal amount of $36,700,000, issued at par. Each $1,000 bond is convertible into 25 common shares. Calculate the income effect of the dividends on preferred shares. $ Dividends on preferred shares Calculate basic earnings per share for 2020. (Round answer to 2 decimal places, e.g. 15.25.) Basic earnings per share $ Determine an incremental per share effect for $10 preferred shares. (Round earnings per share to 2 decimal places, e.g. 15.25.) Incremental Numerator Effect Incremental Denominator Effect Potentially dilutive security EPS $10 Preferred shares $ $ Calculate the proceeds from assumed exercise of 100,000 options. $ Proceeds from exercise of options Calculate the incremental shares oustanding upon the exercise of options. The incremental shares oustanding upon the exercise of options Calculate the after-tax interest paid on the 7% bonds. $ After-tax interest on 7% bonds converted Determine an incremental per share effect for 7% bonds. (Round earnings per share to 2 decimal places, e.g. 15.25.) Incremental Numerator Effect Incremental Denominator Effect Potentially dilutive security EPS 7% Bonds $ $ Rank the potentially dilutive securities from most dilutive to least dilutive. 7% Bonds $10 Preferred shares Options Numerator Denominator EPS Basic $ $ Sub Total Sub Total $ $ Diluted EPS