Data for the Dusty Co. at the end of 2020 is listed below. All bonds and preferred stock were issued at par.

1. $500,000 10 year 6% convertible bond issued on 1/1/13 with conversion terms of 80 shares of common for each $1,000 bond.

2. $1,000,000 20 year 7% convertible bond issued on 1/1/14 with conversion terms of 40 shares of common for each $1,000 bonds.

3. $1,000,000 (10,000 shares) 7% preferred stock $100 par issued on 1/1/15 with conversion terms of 10 shares of common for each share of preferred.

4. $800,000 25 year 9.5% convertible bond issued 6/30/20 with conversion terms of 100 shares of common stock for each $1,000 bond.

5. Common stock outstanding on 12/31/20 600,000 shares

6. Net income for 2020 $1,525,000

7. Income tax rate 40%

Required:

Compute the basic and diluted EPS for 2020 assuming no additional shares of common stock were issued during the year.

PLEASE SHOW ALL WORK!