II. During 20x1, Ellis Corp. had 370,000 shares of $20 par common stock outstanding. On January 1, 20x1. 2.000 bonds (stated rate, 8%) were issued with a maturity value of $1,000 each (so, total face value = $2,000,000). To enhance the bond sale, the company offered a conversion of 50 shares of common stock for each bond at the option of the purchaser. Net income for 20xl was $464,000. The income tax rate was 30 percent. Compute the diluted earnings per share III. Stan Corp provides the following data for 20x1 Transactions in common stock: 1/1, beginning 4/1, issuance 300,000 shares 100,000 shares $100,000 8% $100 par nonconvertible cumulative preferred stock Issued at par $200.000 6% $100 par convertible cumulative preferred stock Issued at $105 Convertible into 20.000 shares Stock options Option price Average market price Year-end market price 60,000 shares $25 $35 $40 The net income for 20xl is $2,300,000. The company's tax rate is 30 percent. No conversion or options were exercised during 20xl. Compute basic and diluted earnings per share