Can I please get a thorough explanation of how to get each calculation. Thank you! Question below and answer is below can you please explain to me how you get the numbers?

Net income		500,000
Common stock outstanding during the period,
	excluding the impact of the conv preferred conversion
	noted below	400,000
Tax rate		40%
Other information
	Stock options outstanding during the entire year
	each convertible into one share of common stock	100,000
	Exercise price	$50
	Average market price during the year	$100
	Market price at year end	$80
	Convertible debt issued 4/1	1,000,000
	Interest rate	8%
	Each $1,000 bond convertible into	55	shares of common stock
	The bonds were issued at	88
	Bond term	10	years
	Cumulative convertible preferred stock issued in prior year
	Shares	10,000
	Par value per share	100
	Dividend rate	3%
	Each share convertible into	8	shares of common stock
	On 9/1 all of the preferred shares were converted into common stock

Answer:

Calculate diluted earnings per share
	Basic earnings per share	500,000	-	20,000	=	480,000	=	$1.13
		400,000	+	26,667		426,667
Effect of potentially dilutive securities
	Options		0		=	0	=	$-
		100,000 - ((100,000 * 50)/$100)				50000
	Convertible bonds	36000	+	5,400	=	41,400	=	$1.00
		41,250				41,250
	Convertible preferred	20,000	=	$0.38
		53,333
Based on the above, the options would be added first, then the preferred, then the bonds as follows:
	Basic plus options	480,000		100,000 - ((100,000 * 50)/$100)	=	480,000	=	$1.01
		426,667	+	50,000		476,667
	Basic plus options plus convertible preferred	480,000	+	20,000	=	500,000	=	$0.94
		476,667	+	53,333		530,000
	Based on the above, the convertible bonds would be anti-dilutive as their per share effect of $1.00 is greater
	than the current EPS without the bonds of $.98. This can also be proved as follows
	Basic plus options plus preferred plus bonds	500,000	+	41,400	=	541,400	=	$0.95
		530,000	+	41,250		571,250
	EPS rises and therefore the bonds are antidilutive and should not be included