Jones Corp.'s capital structure was as follows: December 31 Year 3 Year 2 Outstanding shares of stock: Common 110,000 110,000 Convertible preferred 10,000 10,000 8% convertible bonds $1,000,000 $1,000,000 During Year 3, Jones paid dividends of $3.00 per share on its preferred stock. The preferred shares are convertible into 20,000 shares of common. The 8% bonds are convertible into 30,000 shares of common stock. Net income for Year 3 is $850,000. Assume that the income tax rate is 30%. The diluted earnings per share for Year 3 is