Feer Requirements Referencing Required!) the Rise Section ted your company over Quarterly reports to dit Fac e Bala fder - Chapter 16 Portfolio Problem Spring 2021 Lakeshore Gelato has 21,600 shares of common stock outstanding at the beginning of 2020. Lakeshore Gelato issued 2,700 additional shares on May 1 and 1,800 additional shares on September 30. It also has two convertible securities outstanding at the end of 2020. 1. Convertible preferred stock: 2,250 shares of 8.0%, $50 par, preferred stock were issued on January 2, 2017, for $60 per share. Each share of preferred stock is convertible into 2 shares of common stock. Current dividends have been declared and paid. To date, no preferred stock has been converted. 2. Convertible bonds: Bonds with a face value of $225,000 and an interest rate of 5.0% were issued at par in 2019. Each $1,000 bond is convertible into 20 shares of common stock. To date, no bonds have been converted, Lakeshore Gelato earned net income of $72,500 during 2020. The income tax rate is 30%. REQUIRED 1. Compute the Basic Earnings Per Share 2. Compute the Diluted Earnings Per Share