Collins Corp.'s capital structure was as follows:
					December 31		December 31
Outstanding shares of stock:					Year 4		Year 5
	Common				100,000		100,000
	Convertible preferred				10,000		10,000
10%	convertible bonds				$1,000,000		$1,000,000
During Year 5, Collins paid dividends per share on its preferred stock of							$3.10
The preferred shares are convertible into				20,000	shares of common stock.
The bonds are convertible into			30,000	shares of common stock.
Assume that the income tax rate is				31%
Net income for Year 5:			$245,000

Required:

Collins should report diluted earnings per share of (shown to the nearest cent)

The answer is $2.04 but please show computations.