Isabelle Leclerc is the controller at Oriole Pharmaceutical Industries, a public company. She is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Oriole's external financial statements. The following is selected financial information for the fiscal year ended June 30, 2020: The following transactions have also occurred at Oriole: 1. Options were granted by the company in 2018 to purchase 230,000 shares at $15 per share. Although no options were exercised during 2020 , the average price per common share during fiscal year 2020 was $20. 2. Each bond was issued at face value. The 7% convertible debenture will convert into common shares at 55 shares per $1,000 bond. It is exercisable after five years and was issued in 2019. Ignore any requirement to record the bonds' debt and equity components separately. 3. The $4.50 preferred shares were issued in 2018. 4. There are no preferred dividends in arrears, and preferred dividends were not declared in fiscal year 2020. 5. The 1.0 million common shares were outstanding for the entire 2020 fiscal year. 6. Net income for fiscal year 2020 was $1.6 million, and the average income tax rate was 30%. Calculate the income effect of the dividends on preferred shares. Dividends on preferred shares eTextbook and Media Calculate basic earnings per share for 2020 . (Round answer to 2 decimal places, e.g. 15.25.) Basic EPS \$ eTextbook and Media Calculate the proceeds from assumed exercise of 230,000 options. Proceeds from exercise of options Calculate the incremental shares oustanding upon the exercise of options