Deadline Corp. reported net income of $1,692,900 for 2017.  Deadline's income tax rate was 30% and they reported no below the line items on their income statement.   Deadline had 400,000 shares of common stock outstanding at1/01/17, issued an additional 300,000 shares on 7/1/17, and purchased 90,000 treasury shares on 11/1/17.  The average market price of Behrend's stock during 2017 was $50.  

Throughout 2017 Behrend also had the following securities outstanding: 

a. 20,000 shares of $100 par value 6% cumulative preferred stock (annual preferred dividend requirement of $6/share).  Each preferred share is convertible into 3 shares of common stock. 

b. $10,000,000 of 8% bonds payable issued at face value.  Each $1,000 bond is convertible into 20 shares of common stock. 

c. Stock warrants to purchase 160,000 shares of Behrend Corp. common stock for $40/share. 

Required: 

1. Calculate basic EPS for 2017 (show your work - answer should be $2.94/share), 

2. Determine diluted EPS for 2017 (in formulating your answer, provide the "incremental effect" on the EPS numerator and denominator for each of the potentially dilutive securities a, b and c above) There is a typo in the last two sentences of this problem- all company references should be to "Deadline Corp