EPS with Convertible Bonds and Preferred Stock The Ehrlich Corporation issued 10-year, $5,000,000 par, 7% callable convertible bonds on January 2, 2022. The bonds have a par value of $1,000, with interest payable annually. Each bond is convertible into 18 shares of common stock. The bonds were issued at 100 . Ehrlich's effective tax was 20%. Net income in 2022 was $9,500,000, and the company had 2,000,000 shares outstanding during the entire year. Instructions: Compute both basic and diluted earnings per share. Show calculations