Computing Diluted EPS: Convertible Bonds and Convertible Preferred Stock Jones Corporation's capital structure follows. December 31 2020 Outstanding shares of stock Common stock, outstanding shares 198,000 Convertible preferred stock, outstanding shares 18,000 8% Convertible bonds $1,800,000 During 2020, Jones declared and paid dividends of $3.00 per share on its preferred stock. The preferred shares are convertible in 36,000 shares of common stock. The 8% bonds are convertible into 54,000 shares of common stock. Net income for 2020 is $1,360,000. Assume that the income tax rate is 25%. Required a. Compute basic EPS for 2020. b. Compute diluted EPS for 2020. Note: Round earnings per share amounts to two decimal places. Per Share Net Income Available to Weighted Avg. Common Common StockholdersShares Outstanding Basic EPS Diluted EPS $ A A