Hanson Co. had 200,000 shares of common stock and $1,500,000 of 5% convertible bonds outstanding during 2018. Each $1,000 bond is convertible into 30 shares of common stock and was issued at par. The net income for 2018 was $600,000 and the income tax rate was 30%. Diluted earnings per share for 2018 is (rounded to the nearest penny)

a)

$2.08.

b)

$2.12.

c)

$2.29.

d)

$2.66.