E16-26 (EPS with Convertible Bonds and Preference Shares) On January 1, 2015, Lund Company issued 10-year,

E16-26 (EPS with Convertible Bonds and Preference Shares) On January 10-year, 3,000,000 face value, 6% bonds, at par. Each 1,000 bond is convertible into 15 ordinary shares of Lund. Lund's net income in 2016 was 240,000, and its tax rate was 40%. Interest expense on the liability