During the current year, East Corporation had 2 million shares of common stock outstanding. Two thousand 8% convertible bonds, each with $1,000 face value, were issued at face amount at the beginning of the year. East reported income before tax of $3 million and net income of $1.8 million for the year. Each bond is convertible into 10 shares of common stock. What is diluted EPS (rounded)

$0.90.

$0.95.

$0.89.

$0.94.